Will Black Magic Be Good For Allscripts Healthcare Solutions?

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E = Equity to Debt Ratio Is Normal

The debt-to-equity ratio for Allscripts Healthcare Solutions is normal, but it’s not as strong as the debt-to-equity ratios for Cerner and Quality Systems Inc. (SQII).  

Debt-To-Equity

Cash

Long-Term Debt

MDRX

.36

$93.67 Million

$461.67 Million

CERN

.07

$1.04 Billion

$196.66 Million

QSII

.00

$127.26 Million

$0

 

T = Technicals on the Stock Chart Are Weak

Allscripts Healthcare Solutions has performed poorly over the past three years, especially compared to Cerner. It was time for a change.

1 Month

Year-To-Date

1 Year

3 Year

MDRX

-26.07%

-51.80%

-49.25%

-52.27%

CERN

2.91%

31.05%

34.05%

106.10%

QSII

4.94%

-48.44%

-48.13%

-34.19%

 

At $9.14, Allscripts Healthcare Solutions is currently trading well below all its averages.

50-Day SMA

12.42

100-Day SMA

11.65

200-Day SMA

12.30

 

E = Earnings Have Disappointed, But Revenue Has Increased

Anytime revenue is increasing, there is potential for a turnaround as long as the right management is in place.

2007

2008

2009

2010

2011

Revenue ($)in millions

281.91

383.77

548.44

613.31

1.44B

Diluted EPS ($)

.35

.31

.21

-.03

.39

 

When we look at last quarter on a YoY basis, we see a decrease in revenue and earnings. At least there is room for improvement. However, this shouldn’t rattle investors.

9/2011

12/2011

3/2012

6/2012

9/2012

Revenue ($)in millions

363.74

388.20

364.71

369.96

360.69

Diluted EPS ($)

.10

.14

.03

.04

.05

 

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