On September 15, 2023, Coliseum Capital Management, LLC (Trades, Portfolio) made a significant addition to its portfolio by acquiring 735,796 shares of ModivCare Inc (MODV, Financial). This transaction, priced at $32.76 per share, increased the firm's total holdings in ModivCare to 5,961,140 shares. The trade had a 2.13% impact on the firm's portfolio, raising its position in ModivCare to 17.23%. Notably, Coliseum Capital Management now holds a 42.04% stake in ModivCare Inc.
About Coliseum Capital Management, LLC (Trades, Portfolio)
Coliseum Capital Management, LLC (Trades, Portfolio) is a private firm based in Metro Center, Stamford, CT. The firm manages a portfolio of 12 stocks, with a total equity of $1.11 billion. Its top holdings include Purple Innovation Inc (PRPL, Financial), ModivCare Inc (MODV, Financial), Gildan Activewear Inc (GIL, Financial), GMS Inc (GMS, Financial), and Sonos Inc (SONO, Financial). The firm's investment philosophy is primarily focused on the Consumer Cyclical and Industrials sectors.
ModivCare Inc: A Brief Overview
ModivCare Inc, listed under the symbol MODV, is a US-based healthcare services company that went public on August 19, 2003. The company provides a suite of integrated supportive care solutions for payors and their members. It operates in segments including Non-Emergency Medical Transportation (NEMT), Personal Care, Remote Patient Monitoring (RPM), and Corporate and Other. As of September 16, 2023, the company has a market capitalization of $499.89 million and its stock is trading at $35.25.
GuruFocus Valuation of ModivCare Inc
According to GuruFocus valuation, ModivCare Inc is potentially a value trap, and investors should think twice before investing. The GF Value of the stock is $154.81, and the price to GF Value ratio is 0.23. Since the transaction, the stock has gained 7.6%. Since its IPO, the stock has gained 171.15%, but it has declined by 61.68% year-to-date.
GuruFocus Score and Ranking of ModivCare Inc
ModivCare Inc has a GF Score of 70/100, indicating poor future performance potential. The company's Balance Sheet Rank is 4/10, and its Profitability Rank is 7/10. The company's Growth Rank is 10/10, indicating strong growth potential. However, its GF Value Rank is 2/10, and its Momentum Rank is 1/10, suggesting low momentum. The company's Piotroski F-Score is 2, and its Altman Z score is 1.29, indicating financial instability. The company's cash to debt ratio is 0.01.
ModivCare Inc's Financial Performance
ModivCare Inc's ROE is -71.84, and its ROA is -11.85. The company's gross margin growth is 22.20%, and its operating margin growth is 6.00%. Over the past three years, the company's revenue has grown by 15.20%, its EBITDA has grown by 51.40%, but its earnings have declined by 46.40%. The company's RSI 5 Day is 72.07, its RSI 9 Day is 59.03, and its RSI 14 Day is 51.89. The company's Momentum Index 6 - 1 Month is -55.06, and its Momentum Index 12 - 1 Month is -65.72.
Conclusion
In conclusion, Coliseum Capital Management, LLC (Trades, Portfolio)'s recent acquisition of ModivCare Inc shares is a significant move that increases its stake in the healthcare services company. However, given ModivCare's current financial performance and GuruFocus scores, investors should exercise caution. The transaction's impact on the stock and the firm's portfolio will be closely watched by value investors.
