Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 7 stocks made the list for top value stocks in the Healthcare Facilities & Services industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Latest Healthcare Facilities & Services Stock News

Before choosing which top Healthcare Facilities & Services stock to buy, be sure to conduct proper due diligence: analyze various financial metrics and look at historical data, public statements and news coverage.

Our fundamental outlook for health care facilities (primarily hospitals) industry over the next 12 months is neutral. Widespread distribution of vaccines in the first half of 2021 is helping Covid-19 counts come down. This is likely to alleviate some of the pressure’s hospitals have been facing with staffing difficulties and PPE shortages. In addition, elective procedure volumes, a key source of profitability, are likely to continue to recover as hospitals as patients become more comfortable returning to postponed doctors’ appointments and get diagnoses again. At the same time, the combination of Covid-19 and the global response to it also recently led to a massive increase in U.S. unemployment. We expect the elevated unemployment (5.8% as of May 2021) to negatively impact health facilities, primarily by 1) increasing bad debt expense and charity care as well as by 2) lowering elective procedure volumes for the uninsured. Yet, demand for hospital services will likely remain relatively insulated in a recession when compared to many other industries. On the negative side, however, the Hospital Price Transparency rule went into effect January 1, 2021, which releases competitive information about payer-negotiated rates for common services and has led to negative headlines as many health care facilities try to make finding this data on their websites difficult. The federal government has passed a series of stimulus bills to address Covid-19’s impact. The bills provided $178 billion to health care providers through the Provider Relief Fund, in addition to Medicare and Medicaid provisions. This includes payments for uninsured patients, a 20% boost to Medicare rates on Covid-19 cases, and sweeping reimbursement increases, which should significantly aide hospitals.

Why Focus on Undervalued Healthcare Facilities & Services Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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7 Undervalued Healthcare Facilities & Services Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 7 undervalued stocks in the Healthcare Facilities & Services industry for Thursday, May 11, 2023. Let’s take a closer look at their individual scores to see how they measure up against each other and the Healthcare Facilities & Services industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Americann Inc’s Value Grade

Value Grade:

AmeriCann, Inc. is a specialized cannabis company. The Company is developing product manufacturing and greenhouse cultivation facilities. Its flagship project is the Massachusetts Cannabis Center. The Massachusetts Cannabis Center (MCC) is being developed on an approximately 52-acre parcel located in Southeastern Massachusetts. Its MCC project is permitted for approximately 987,000 square feet of cannabis cultivation and processing infrastructure, which is being developed in phases to support both the existing medical cannabis and the newly emerging adult-use cannabis marketplace. Its first phase of the million square feet project, Building 1, is about 30,000 square feet. The Company through its subsidiary, AmeriCann Brands, Inc., has received two licenses from the Massachusetts Cannabis Control Commission to cultivate cannabis and provide extraction and product manufacturing support to the entire MCC project, as well as to other licensed cannabis farmers throughout regulated markets.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Americann Inc has a Value Score of 66, which is considered to be undervalued.

When you look at Americann Inc’s price-to-sales ratio at 1.91 compared to the industry median at 1.23, this company has a higher price relative to revenue compared to its peers. This could make Americann Inc’s stock less attractive for value investors.

Americann Inc’s price-earnings ratio is 15.04 compared to the industry median at 22.95. This means it has a lower share price relative to earnings compared to its peers. This could make Americann Inc more attractive for value investors.

Now, let’s assess Americann Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 3.9, when compared to the industry median of 12.6, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Americann Inc’s shareholder yield is higher than its industry median ratio of (1.46%). Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Americann Inc’s price-to-book ratio is lower than its industry median ratio of 2.19. This could make Americann Inc more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Americann Inc’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Americann Inc’s price-to-free-cash-flow ratio is lower than its industry median ratio of 17.91. This could make Americann Inc more attractive because the lower P/FCF ratio indicates that Americann Inc is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

Akumin Inc’s Value Grade

Value Grade:

Akumin Inc. is a provider of radiology and oncology solutions to hospitals, health systems and physician groups. The Company operates through two segments: Radiology and Oncology. The Company provides fixed-site outpatient radiology and oncology services through a network of approximately 234 owned and/or operated centers, as well as outpatient radiology and oncology solutions to approximately 1,000 hospitals and health systems across 48 states. Its imaging procedures include magnetic resonance imaging (MRI), computed tomography (CT), positron emission tomography (PET and PET/CT), ultrasound, diagnostic radiology (X-ray), mammography and other related procedures. Its cancer care services include a full suite of radiation therapy and related offerings.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Akumin Inc has a Value Score of 84, which is considered to be undervalued.

You can read more about Akumin Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Caremax Inc’s Value Grade

Value Grade:

CareMax, Inc. is a technology-enabled care platform company. The Company provides value-based care and chronic disease management through physicians and health care professionals committed to the overall health and wellness continuum of care for its patients. It operates over 62 centers and managed affiliated providers across 10 states that offer a comprehensive suite of healthcare and social services, and a software and services platform that provides data, analytics, and rules-based decision tools/workflows for physicians across the United States. Its CareOptimize is an end-to-end technology platform that aggregates and analyzes data using proprietary algorithms and machine learning to support point of care guidance and automated interventions. It offers 24/7 access to care through employed providers and provide a comprehensive suite of high-touch health care and social services to its patients, including primary care, specialty care, telemedicine, health and wellness, and others.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Caremax Inc has a Value Score of 70, which is considered to be undervalued.

Caremax Inc’s price-to-book ratio is higher than its peers. This could make Caremax Inc less attractive for value investors when compared to the industry median at 2.19.

You can read more about Caremax Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

CVS Health Corp’s Value Grade

Value Grade:

CVS Health Corporation, together with its subsidiaries, is a diversified health solutions company. The Company?s segments include Health Care Benefits, Health Services, Pharmacy & Consumer Wellness and Corporate/Other. Its Health Care Benefits offer a range of traditional, voluntary and consumer-directed health insurance products and related services, including medical, pharmacy, dental and behavioral health plans, medical management capabilities, Medicare Advantage and Medicare supplement plans, and Medicaid health care management services. Its Health Services provides a full range of pharmacy benefit management solutions, delivers health care services in its medical clinics, virtually, and in the home, and offers provider enablement solutions. The Pharmacy & Consumer Wellness segment dispenses prescriptions in its retail pharmacies and through its infusion operations, provides ancillary pharmacy services including pharmacy patient care programs, and diagnostic testing.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

CVS Health Corp has a Value Score of 81, which is considered to be undervalued.

CVS Health Corp’s price-earnings ratio is 23.0 compared to the industry median at 22.9. This means that it has a higher price relative to its earnings compared to its peers. This makes CVS Health Corp less attractive for value investors.

CVS Health Corp’s price-to-book ratio is higher than its peers. This could make CVS Health Corp less attractive for value investors when compared to the industry median at 2.19.

You can read more about CVS Health Corp’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Enhabit Inc’s Value Grade

Value Grade:

Enhabit, Inc. is a provider of home health and hospice services. Its segments include Home Health and Hospice. The Home Health segment provides a range of Medicare-certified skilled home health services, including skilled nursing, physical, occupational and speech therapy, medical social work, and home health aide services. The Home Health segment has a diversity of referral sources, with patients arriving from acute care hospitals, inpatient rehabilitation facilities, surgery centers, assisted living facilities, and skilled nursing facilities, as well as community physicians. The Hospice segment provides hospice services to terminally ill patients and their families. Its Medicare-certified hospice operations provide a full range of hospice services, including pain and symptom management, palliative and dietary counseling, social worker visits, spiritual counseling, and family member bereavement counseling. The Company has over 252 home health agencies and 105 hospice agencies.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Enhabit Inc has a Value Score of 78, which is considered to be undervalued.

Enhabit Inc’s price-to-book ratio is higher than its peers. This could make Enhabit Inc less attractive for value investors when compared to the industry median at 2.19.

You can read more about Enhabit Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Kaya Holdings Inc’s Value Grade

Value Grade:

Kaya Holdings, Inc. is a holding company. The Company is focused on wellness and mental health through operations in medical and recreational cannabis, cannabidiol (CBD) products, and psychedelic treatment clinics. The Company produces, distributes, and/or sells a full range of cannabis products including flowers, oils, vape cartridges, and cannabis-infused confections, baked goods, and beverages through a fully integrated group of subsidiaries and companies supporting highly distinctive brands. It operates through three majority-owned subsidiaries, which include Marijuana Holdings Americas, Inc. (MJAI), Kaya Brands USA, Inc. (KBUS) and Kaya Brand International, Inc. (KBI). MJAI operates its United States based cannabis operations including its Kaya Shack retail brand and the Kaya Farms cultivation brand. KBUS manages cannabis and cannabidiol (CBD) products, which include cannabis extracts and concentrates, vape cartridges, chocolates, gummies and chews, foods and cannaceuticals.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Kaya Holdings Inc has a Value Score of 67, which is considered to be undervalued.

Kaya Holdings Inc’s price-to-book ratio is higher than its peers. This could make Kaya Holdings Inc less attractive for value investors when compared to the industry median at 2.19.

You can read more about Kaya Holdings Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Novo Integrated Sciences Inc’s Value Grade

Value Grade:

Novo Integrated Sciences, Inc. is a parent company to its subsidiaries. The Company owns Canadian and United States subsidiaries that provide, or intend to provide, essential and differentiated solutions to the delivery of multidisciplinary primary care and related wellness products through the integration of medical technology, interconnectivity, advanced therapeutic, diagnostic solutions, personalized product offerings, and rehabilitative science. The Company operates through two segments: Healthcare Services and Product Sales. Its specialized multidisciplinary primary healthcare services include physiotherapy, chiropractic care, manual/manipulative therapy, occupational therapy, eldercare, massage therapy, acupuncture and functional dry needling, chiropody, stroke and traumatic brain injury/neurological rehabilitation, kinesiology, vestibular therapy, dietician and others. Its subsidiaries include Novo Healthnet Limited, Novomerica Health Group, Inc., PRO-DIP, LLC and others.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Novo Integrated Sciences Inc has a Value Score of 75, which is considered to be undervalued.

Novo Integrated Sciences Inc’s price-to-book ratio is higher than its peers. This could make Novo Integrated Sciences Inc less attractive for value investors when compared to the industry median at 2.19.

You can read more about Novo Integrated Sciences Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Healthcare Facilities & Services Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Healthcare Facilities & Services stocks as well as other industrys.

Choosing Which of the 7 Best Healthcare Facilities & Services Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• Americann Inc stock has a Value Grade of B.
• Akumin Inc stock has a Value Grade of A.
• Caremax Inc stock has a Value Grade of B.
• CVS Health Corp stock has a Value Grade of A.
• Enhabit Inc stock has a Value Grade of B.
• Kaya Holdings Inc stock has a Value Grade of B.
• Novo Integrated Sciences Inc stock has a Value Grade of B.

Now that you have a bit more background about each of the 7 undervalued stocks in the Healthcare Facilities & Services industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Healthcare Facilities & Services Stocks

Want to learn more about Healthcare Facilities & Services stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 7 Undervalued Healthcare Facilities & Services Stocks for Thursday, May 11
• 5 Undervalued Healthcare Facilities & Services Stocks for Wednesday, May 10
• Why Enhabit Inc’s (EHAB) Stock Is Down 8.73%
• Why NeoGenomics, Inc.’s (NEO) Stock Is Up 7.67%

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.