Corporate Webpages Gentiva Health Services, Inc.
Gentiva Health Services provides home health care for the aged.
It's better than an assisted living home for many who otherwise
couldn't take care of themselves. But the industry has been
under investigation by Senate committees for possible Medicare
fraud. Gentiva advertises that perhaps the entire cost of home
health care can be picked up by Medicare.
This company was selected on the basis of spectacular earnings
growth coupled with high volatility in stock share price. This
turned out to be possibly not the best method for screening.
The company utterly failed to pass the Zenith Index test. Even
though the financial ratios looked good to us except possibly
for high debt, failure of our Index test points to flaws in the
fundamentals or company books.
Another thing that jumped out right away was the number of legal
teams lining up at the door with class action lawsuits, both
past and presently ongoing. These seemed intially to surround the
company's acquisition of Odyssey Healthcare which greatly
allowed the company to inflate earnings. Increasing earnings
through acqusitions is one way executives show "performance" but
it can be misleading. In actuality, the projected earnings for
the company as a whole are rapidly decreasing. Prospects for
home health care service providers are deemed to be on the
chopping block of one of the first Medicare cuts to be
considered by Congress. Most of Geniva's revenues come from Medicare.
Add to this $12 million in fines paid to the Government by
Geniva after being found guilty of Medicare billing abuses by
ordering an excess number of home visits to inflate Medicare
billing charges. Now the lawyers are lining up to jump on the
Senate verdict by charging the company with fraud thus
misleading investors. Despite all the bad publicity, we believe
Gentiva's corporate governance is excellent.
Before you run out an sell the company shares short, which have
already been pounded down to where the current p/e is below 2
and the book value is five times the stock share price, consider
that Dimensional Fund Advisors is a major institutional holder
and funds are in general buying more shares by a wide margin.
(DFA is our favorite fund manager with a sterling performance
record in our opinion.)
Even Cramer appears confused, listing the stock as one "about to
pop" while giving it a neutral rating on this website.
Gentiva recognizes that the baby boomers are back in force as a
factor in the American economy. America's aging population
provides a ready source of growth for the company.
A key buzzword in the company's expansion plans is "hospice"
which is a type of home health care for those with diseases
which are uncurable, and concentrates of making a person's last
days comfortable, pain-free, and with dignity. Emotional,
spiritual, social, and bereavement counseling services are an
important part of this.
In many ways, it boils down to heartless Republicans convincing
the American public that such care is too costly (except for
their rich buddies), versus a Democrat view that universal
healthcare is a more noble pursuit. Who will win out is subject
to much debate and uncertainty, and markets abhor uncertainty.
11-01-2011: Gentiva Health Services, Inc. (GTIV): Heart Versus Austerity
(WAIT FOR PAGE TO LOAD COMPLETELY BEFORE LINKS WORK.)
Company Profile
Company History
News
Comparison with Peers
Bond Issue
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Financial Statements
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Intrinsic Value (Disc. CashFlow)
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Research Reports
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Sentiment
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Stock Report
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Moving Average Chart
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Company Profile |
Company History |
News |
Comparison |
Similar Companies Performance:
Bond Issue |
Zenith Index |
Under current market conditions, a Zenith Index Score of 1.20 or above is required for a positive rating on this factor. 1.21 -1.30 is considered acceptable, 1.30-1.40 is consider strong and > 1.40 is considered exceptionally strong. Accounting statements in this section often contain mistakes, especially in earlier years' totals, but data is deemed sufficient for us to give a rating. More accurate financial statements follow in the next section.
Gentiva Health Services Inc. (GTIV ) Sector: Healthcare
3350 Riverwood Parkway Industry: Home Health Care
Suite 1400 Exchange: Nasdaq
Atlanta, GA 30339
Gentiva Health Services, Inc. provides home health services and hospice
care in the United States. The company offers skilled nursing and therapy
services, paraprofessional nursing services, and homemaker services
primarily to adult and elderly patients through licensed and
Medicare-certified agencies. It also provides its services through
specialty programs comprising Gentiva Orthopedics, which offers
individualized home orthopedic rehabilitation services to patients
recovering from joint replacement or other major orthopedic surgery;
Gentiva Safe Strides that provides therapies for patients with balance
issues; and Gentiva Cardiopulmonary, which helps patients and their
physicians manage heart and lung health in a home-based environment. In
addition, the company offers services through Gentiva Neurorehabilitation,
which helps patients who have experienced a neurological injury or
condition by removing the obstacles to healing in the patient-Ęs home;
Gentiva Senior Health that addresses the needs of patients with
age-related diseases and issues; and Rehab Without Walls unit, which
provides neurorehabilitation therapies for patients with traumatic brain
injury, cerebrovascular accident injury, and acquired brain injury.
Further, it offers consulting services to home health agencies, which
include operational support, billing and collection activities, and
on-site agency support and consulting. Additionally, the company provides
hospice services primarily in the patient-Ęs home or other residence, such
as an assisted living residence or nursing home, as well as in a hospital.
Gentiva Health Services, Inc. was founded in 1999 and is headquartered in
Atlanta, Georgia.
Last Trade: 4.31 52-Week Range: 29.21 - 2.81
Trade Date: 10-31 Avg. Volume: 960,682 Shares
Index Membership: Employees: 15,350
Corporate Governance:
Audit (Low Concern), Board (Low Concern),
Compensation (Low Concern), Shareholder Rights (Low Concern).
EPS: 1.39 Dividend Amount: $ 0.00 Yield: 0.00%
Ex-Dividend Date: Jun 18, 20 Mkt Cap: $ 137,730K
Payout Ratio: 0.00%
Last Split Factor (new for old): N/A Split Date: N/A
Key Statistics:
Enterprise Value: $ 1,070,000K Revenue (ttm) : $ 1,770,000K
Gross Profit: $ 748,090K
Earnings before Income Tax, Depreciation and Amortization: $ 232,120K
Enterprise Value/Revenue (ttm): 0.60 Revenue per Share: $ 59.01
Enterprise Value/EBITDA (ttm): 4.60 Qtrly Rev Growth (y to y): 53.80%
P/E Ratio (fwd projected): 2.49 P/E Ratio (current): 3.24
P/E Growth Ratio (5 yr expected): 0.11 Operating Margin: 11.50%
Price/Sales Ratio: 0.08 Profit Margin: 2.41%
Price/Book Value: 0.21 Book Value: $ 21.72/sh.
Return on Assets: 7.97% Net Income Avl to Common: $ 45,870K
Return on Equity: 7.35% Diluted Earnings/Share: $ 1.39
Qrtly Earnings Growth (yoy): -72.60%
Balance Sheet Items : Cash Flow Items (ttm):
(most recent qrtr) (trailing 12 mo.)
Total Cash: $ 98,150K Operating Cash Flow:$ 114,520K
Total Debt: $ 1,030,000K Lvgd Free Cash Flow:$ 65,790K
Total Debt/Equity: 154.33
Total Cash/Share: $ 3.21
Current Ratio: 1.55
Share Statistics: Stock Price History:
Shares Outstanding: 30,610K Stk 52-Week Change: -80.67%
Float: 28,840K S&P 500 52-Wk Chng: 8.61%
Sh. Short % of Float: 6.40% 50-Day Moving Avg: 4.96
Short Ratio: 1.70 200-Day Moving Avg: 15.35
% Held by Institutions: 86.20% Beta: 1.15
% Held by Insiders: 6.02%
Analysts' Estimates: Cur. Qtr Next Qtr Cur. Year Next Year
___________________________ Sep 11 Dec 11 Dec 11 Dec 12
Average Earnings Estimate 0.48 0.52 2.08 1.81
Average Revenue Estimate 56M 461M 1,830M 1,840M
Factors Comparing This Company to Its Industry Leader (1.0 = Average):
Long Term EPS Growth Rate (5 yr): 3.667 EPS Growth (Qrtly YoY): 1.375
PEG Ratio (ttm, 5 yr expected): 1.375 P/E Ratio (ttm): 1.375
Revenue Growth (Qrtly YoY): -11.000
Annual Income Statements: All numbers in thousands)
Period Ending Dec31,2010 Jan3, 2010 Dec28,2008
Total Revenue 1,447,029 1,152,460 1,300,438
Cost of Revenue 698,936 553,530 717,903
Gross Profit 748,093 598,930 582,535
Operating Expenses:
Research & Development 0 0 0
Selling, General & Administrative 616,474 490,866 490,451
Non-Recurring Expenses 0 0 -107,933
Other Operating Expenses 0 0 0
Total Operating Expenses 0 0 0
Operating Income or Loss 131,619 108,064 200,017
Income from Continuing Operations:
Total Other Income/Expenses Net 2,759 9,035 2,290
Earnings Before Interest & Taxes 134,378 117,099 202,307
Interest Expense 41,686 9,211 19,377
Income Before Taxes 92,692 107,888 182,930
Income Tax Expense 35,704 39,164 29,445
Minority Interest -526 0 0
Net Income from Continuing Op.s 58,286 69,796 153,450
Non-recurring Events:
Discontinued Operations -5,605 -10,614 0
Extraordinary Items 0 0 0
Effect of Accounting Changes 0 0 0
Other Items 0 0 0
Net Income 52,155 59,182 153,450
Preferred Stock & Other Adjustmnts 0 0 0
Net Income Avail To Common Shares 52,155 59,182 153,450
Quarterly Income Statements: All numbers in thousands)
Period Ending Jun30,2011 Mar31,2011 Dec31,2010 Oct3, 2010
Total Revenue 456,943 458,815 464,966 387,833
Cost of Revenue 238,866 235,245 233,117 189,980
Gross Profit 218,077 223,570 231,849 197,853
Operating Expenses:
Research & Development 0 0 0 0
Selling, General & Adminis. 194,049 175,209 179,993 171,710
Non-Recurring Expenses 0 0 0 0
Other Operating Expenses 0 0 0 0
Total Operating Expenses 0 0 0 0
Operating Income or Loss 24,028 48,361 51,856 26,143
Income from Continuing Operations:
Total Other Income/Expenses Net 5,252 665 679 663
Earnings Before Int. & Taxes 29,280 49,026 52,535 26,806
Interest Expense 21,425 27,548 24,729 13,443
Income Before Taxes 7,855 21,478 27,806 13,363
Income Tax Expense 2,851 8,413 8,951 4,996
Minority Interest -151 -167 -393 -133
Net Income from Continuing Op.s 5,340 13,619 18,872 8,885
Non-recurring Events:
Discontinued Operations 0 0 -2,660 -660
Extraordinary Items 0 0 0 0
Effect of Accounting Changes 0 0 0 0
Other Items 0 0 0 0
Net Income 5,189 13,452 15,819 8,092
Preferred Stock & Other Adj.s 0 0 0 0
Net Income Avail To Common Shs 5,189 13,452 15,819 8,092
Annual Balance Sheets: All Numbers in Thousands
Period Ending Dec31,2010 Jan3, 2010 Dec28,2008
Current Assets:
Cash & Cash Equivalents 104,752 152,410 69,201
Short Term Investments 0 0 0
Net Receivables 287,743 192,065 189,134
Inventory 0 0 0
Other Current Assets 48,910 16,453 13,141
Total Current Assets 441,405 360,928 271,476
Long-Term Investments 50,635 49,336 59,314
Property, Plant & Equipt 85,707 74,602 63,815
Goodwill 1,085,066 299,534 308,213
Intangible Assets 374,057 251,793 250,432
Accumulated Amortization 0 0 0
Other Assets 83,258 24,410 20,247
Deferred Long Term Asset Charges 0 0 0
Total Assets 2,120,128 1,060,603 973,497
Current Liabilities:
Accounts Payable 224,018 121,126 48,922
Short/Current Long Term Debt 25,000 5,000 0
Other Current Liabilities 67,623 43,884 97,153
Total Current Liabilities 316,641 170,010 146,075
Long Term Debt 1,026,563 232,000 251,000
Other Liabilities 27,493 21,503 17,189
Deferred LT Liability Charges 111,199 65,927 64,262
Minority Interest 2,658 0 0
Negative Goodwill 0 0 0
Total Liabilities 1,484,554 489,440 478,526
Stockholder Equity:
Misc. Stocks Options Warrants 0 0 0
Redeemable Perferred Stock 0 0 0
Preferred Stock 0 0 0
Common Stock 3,080 2,994 2,899
Retained Earnings 272,394 220,239 161,057
Treasury Stock -12,484 -7,499 -2,502
Capital Surplus 372,106 355,429 334,687
Other Stockholder Equity 478 0 -1,170
Total Stockholder Equity 635,574 571,163 494,971
Net Tangible Assets -823,549 19,836 -63,674
Quarterly Balance Sheets: All Numbers in Thousands
Period Ending Jun30,2011 Mar31,2011 Dec31,2010 Oct3, 2010
Current Assets:
Cash & Cash Equivalents 98,149 91,792 104,752 81,670
Short Term Investments 0 0 0 0
Net Receivables 284,675 303,390 287,743 310,292
Inventory 0 0 0 0
Other Current Assets 42,238 46,394 48,910 46,555
Total Current Assets 425,062 441,576 441,405 438,517
Long-Term Investments 37,944 51,190 50,635 50,618
Property, Plant & Equipt 85,842 84,681 85,707 83,363
Goodwill 1,085,066 1,085,066 1,085,066 1,085,066
Intangible Assets 367,519 370,786 374,057 377,329
Accumulated Amortization 0 0 0 0
Other Assets 89,160 92,864 83,258 83,351
Deferred LT Asset Charges 0 0 0 0
Total Assets 2,090,593 2,126,163 2,120,128 2,118,244
Current Liabilities:
Accounts Payable 199,123 207,621 224,018 214,397
Current Portion LT Debt 20,938 31,250 25,000 38,750
Other Current Liabilities 55,116 70,551 67,623 70,411
Total Current Liabilities 275,177 309,422 316,641 323,558
Long Term Debt 1,007,187 1,016,875 1,026,563 1,036,250
Other Liabilities 30,051 30,827 27,493 27,333
Deferred LT Liab. Charges 111,791 111,417 111,199 112,902
Minority Interest 2,530 2,523 2,658 2,543
Negative Goodwill 0 0 0 0
Total Liabilities 1,426,736 1,471,064 1,484,554 1,502,586
Stockholder Equity:
Misc. Options, WarrantS 0 0 0 0
Redeemable Perferred Stock 0 0 0 0
Preferred Stock 0 0 0 0
Common Stock 3,122 3,115 3,080 3,046
Retained Earnings 291,035 285,846 272,394 256,575
Treasury Stock -12,878 -12,484 -12,484 -12,484
Capital Surplus 382,578 378,622 372,106 368,521
Other Stockholder Equity 0 0 478 0
Total Stockholder Equity 663,857 655,099 635,574 615,658
Net Tangible Assets -788,728 -800,753 -823,549 -846,737
Annual Cash Flow: All Numbers in Thousands
Period Ending Dec31,2010 Jan3, 2010 Dec28,2008
Net Income 52,155 13,452 153,450
Operating Activites:
Depreciation 27,592 24,131 23,797
Adjustments to Net Income 15,129 20,101 -79,231
Changes in Accounts Recv'bls 35,600 -14,556 -25,555
Changes in Liabilities 25,552 20,246 -750
Changes in Inventories 0 0 0
Changes in Other Op'ing Actv's 0 -3,996 -1,011
Total Cash Flow fr Operations 142,621 105,108 70,700
Investing Activities:
Capital Expenditures -16,184 -24,857 -24,004
Investments 0 12,000 18,250
Other Cash Flows fr Investing 0 0 0
Total Cash Flows fr Investing -841,307 -17,232 38,684
Financing Acitivies:
Dividends Paid 0 0 0
Sale or Purchase of Stock 3,633 8,525 11,547
Net Borrowings 813,918 -14,875 -68,124
Other Cash Flows fr Financing 0 0 2,227
Total Cash Flows fr Financing 651,028 -4,667 -54,350
Effect of Exchange Rate Change 0 0 0
Change in Cash & Cash Equiv.s -47,658 83,209 55,034
Quarterly Cash Flow: All Numbers in Thousands
Period Ending Jun30,2011 Mar31,2011 Dec31,2010 Oct3, 2010
Net Income 5,189 13,452 15,819 8,092
Operating Activites:
Depreciation 10,742 14,032 10,764 7,407
Adjustments to Net Income 1,126 6,227 10,667 -3,531
Changes in Accounts Recv'bls 19,953 -20,449 13,468 13,384
Changes in Liabilities -9,202 -6,640 6,805 27,575
Changes in Inventories 0 0 0 0
Changes in Other Oper'g Acts 0 0 0 -4,068
Total Cash Flow f Operations 17,156 2,721 50,972 43,670
Investing Activities:
Capital Expenditures -5,400 -3,317 -6,875 -3,696
Investments 0 0 0 0
Other Cash Flows fr Investing 0 0 1,000 -826,419
Total Cash Flows fr Investing 7,861 -3,317 -5,875 -830,115
Financing Acitivies:
Dividends Paid 0 0 0 0
Sale or Purchase of Stock 1,583 4,652 1,650 1,356
Net Borrowings -20,069 -3,514 85,248 734,014
Other Cash Flows fr Financing -174 -239 0 0
Total Cash Flows fr Financing -18,660 -12,364 -22,015 677,049
Effect of Exchange Rate Chg 0 0 0 0
Change in Cash & Cash Equiv. 6,357 -12,960 23,082 -109,396
GTIV Gentiva Health Services Inc. [Indices near +3.0 or near zero,
or < zero bear special attention.]
P/E Ratio Tests:
Current P/E Ratio < 28? 3.0000 P/E Ratio > 5? 0.0000
P/E Ratio Vs Growth Rate: -1.6700 Forward P/E Ratio < 28? 3.0000
Sales Tests:
Price/Sales Ratio < 2.3? 3.0000 Inventory/Sales < 5%? 1.0000
Sales < $1 billion? 0.6911 Operating Margin < 7.5%? 0.6522
Balance Sheet Tests:
Debt/Equity < 0.40? 0.0026 Long-Term Debt Service: 0.6191
LTD Being Reduced? 2.4000 Short-Term Debt Service: 3.0000
Current Ratio > 2? 0.7750 Working Capital >= 1.5? 1.2948
Leverage Ratio < 20%? 0.4614 Debt / Assets < 1? 2.0653
Quick Ratio > 1? 1.3912 Inventory Turnover > 1? 1.0000
Shares Out Decreasing? 1.8000 Market Cap.> 1.5 Billion? 3.0000
Profit Margin > 7.5%? 0.3213
Income Tests:
Dividend Yield > 2.0%? 0.0000 EPS Annual Growth > 10%? -2.6200
Enterprise Value/Revenue: 0.4000 EPS 5-yr Growth > 20%? 3.0000
Enterprise Value/EBITDA: 0.6571 EPS Growth Consistent? 0.6000
EPS Qrtly Growth > 10%? -3.0000 Collection < 45 days? 0.6200
Rev. Qtrly Growth > 15%? 3.0000 Gross Pft/Cur. LTD < 1? 3.0000
EPS Annual Growth > 10%? -2.6200 Borrowing Int. Rate< 6%? 1.9335
Stock Performance Tests:
Volatility > 25%? 3.0000 % Held by Insiders < 5%? 0.8306
Beta > 1.25? 0.9200 % Held by Institut. < 50? 0.5800
50 Da MA > 200 Da MA? -3.0000 % Held by Institut. > 30? 2.8733
52-Wk Change vs. S&P 500: 0.5740 Short Ratio > 5? 0.3400
Price/Book Value < 3? 3.0000 Short % of Float > 20? 0.3200
Return on Assets > 17%? 0.4688 Average Volume > 100,000? 3.0000
Cash Flow Tests:
Oper. C.F. > Lever'd C.F: 1.7407 Positive Free Cash Flow? 1.0000
Positive Oper. Cash Flow? 1.0000 Price to C.F./sh. Ratio: 0.1495
Cash Flow / Assets >.10? 0.3147
GTIV Gentiva Health Services Inc. Overall Zenith Index: 1.0724
Financial Statements |
Financial Ratios |
. . . . . . . . . . . . 1 = Highest , 10 = Lowest
Market Grader |
Intrinsic Value (DCF) |
Intrinsic Value by Discounted Cash Flow Method:
Intrinsic Value (PEG) |
Intrinsic Value by Projected Earnings Growth Method:
Stock Scout |
We find "Scout" to be a bit biased toward the high end, so anything under a 6 is considered a negative, 6 and above, positive.
Projected Earnings |
Research Reports |
Analysts' Opinions |
Insider Activity |
Institutional Activity |
Institutional Orders to Buy or Sell:
Sentiment |
Zenith uses the "sentiment" score above or below 50 to award a positive or negative point in the Decision Matrix.
Short Interest Ratio |
As the short interest rises as a percentage of average daily share volume (Days to Cover), this is considered a measure of negative sentiment. Similarly, a decrease in that percentage is considered positive sentiment.
Stock Report |
Management's Discussion of Results of Operations Excerpts |
Moving Average Chart |
Right Time Study |
Channeling Potential |
The summary below includes a value for `Degree,' which refers on a
scale of 1 to 10 the range of a channel in the period under consi-
deration compared to the total range of price movement. It also looks
for the last closing price to be within the channel, otherwise zeroed.
The `Index' is the `Degree' weighted for volatility. Generally, the
the higher the index, the more suitable is the stock for trading as
a `rolling stock' between channel high and low points.
Results for Gentiva Health Services:
Symbol? GTIV
Total Months Available: 44
Months in Cycle? 4
Months Covered by Periods: 12
Period 1 Period 2 Period 3
H1 L1 H2 L2 H3 L3
28.23 20.96 29.21 18.78 21.83 2.81
RANGE = 29.21 TO 2.81 Close = 4.34
CHANNEL = 21.83 TO 20.96 Degree = 0
Volatility = 20.05% Index = 0
Intraday Chart |
9 Days:
Stock Fetcher |
Point & Figure Chart |
Wall Street Analyzer |
Marketspace Chart |
Time Series Forecast |
Neural Network Prediction |
"Neurostock" can only track long trades. Therefore its performance, as tracked by itself on stocks which are consistently falling, may not appear as good as it could if each "sell" signal were a "short sale."
Ultimate Trading Systems |
The corresponding trades for the above chart are shown in tabular form below.
Recommendation |
| Factors | Weighted Points |
|---|---|
| News | - 1 |
| Comparison | - 1 |
| Industry | - 1 |
| Bond Issue | 0 |
| Zenith Index | - 1 |
| Non-GAAP vs. GAAP Earnings < 1% | - 1 |
| Cash Flow | + 1 |
| Ratios | + 1 |
| Market Grader | - 1 |
| Intrinsic Value DCF | + 1 |
| Intrinsic Value DDM | + 1 |
| Stock Scout | - 1 |
| Projected Earnings | - 1 |
| Research Reports | - 1 |
| Analysts | - 1 |
| Executive Perquisites | + 1 |
| Insider Activity | - 1 |
| Institutional Activity | + 1 |
| Management Reporting | + 1 |
| Short Interest | + 1 |
| Sentiment | - 1 |
| Standard & Poor's | - 1 |
| Moving Average | + 1 |
| Right Time Study | + 1 |
| Stock Fetcher | - 1 |
| Point & Figure | - 1 |
| Wall Street Analyzer | - 1 |
| Marketspace Chart | + 1 |
| Time Series Chart | + 1 |
| Neural Network | 0 |
| Stock Options | + 1 |
| Ultimate Trading Systems | + 1 |
| Total | - 2 |
Place 6,650 shares of Gentiva Health Services, Inc. (GTIV) on the Active List.
