CareMax (CareMax) Predictability Rank

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What is CareMax Predictability Rank?

Not Rated

Warren Buffett said many times that the companies he likes are:

1. Simple businesses that he understands
2. that have predictable and proven earnings and
3. with economic moat
4. those can be bought at a reasonable price.

It is hard to quantify "simple businesses that he (Buffett) understands", so we will focus on the other three characteristics instead. In GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank, we will show that the businesses that have predictable and proven earnings are usually also simple businesses that an average person could understand.

GuruFocus conducted a back test study of Warren Buffett's strategy of "buying good companies at fair prices" for the years from 1998-2008.

CareMax Predictability Rank Calculation

In our database there are 2403 stocks that have been traded from Jan. 2, 1998 to Aug. 31, 2008. We have the complete 10-year financial data and trading prices of these companies for this period. We rank the predictability of these companies based on the consistency of their revenue per share and EBITDA (earning before interest, tax, depreciation and amortization) per share over the past ten fiscal years, and study the correlation between the stock performances and the predictability of the business.

Our study may be subject to these biases and assumptions:

Dividend yields are not counted for investment returns
Effects of price changes due to spin-offs may not be fully adjusted
Study is subjected to survivorship bias due to de-listing, bankruptcy, LBO, M&A, etc.

The correlation between business predictability and investment returns of a company is showed below.

Correlation Between Business Predictability and Investment Returns

	Predictables	Non-Predictable	All stocks
Total Number of stocks	570	1833	2403
Total Lost Money	61	830	891
Total Lost More Than 50%	18	412	430
Total Lost More Than 90%	4	86	90
Average Gain	260.6%	100.0%	138.1%
Median Gain	150.0%	13.0%	39.0%
Maximum Gain	2852.0%	11483.0%	11483.0%
Maximum Loss	-100.0%	-100.0%	-100.0%
Annualized Average Gain	12.7%	6.7%	8.4%
Annualized Median Gain	8.9%	1.1%	3.1%

For the 570 predictable companies, we have seen strong correlation between the predictability of businesses and the stock performances over the past 10 years, regardless of the valuation of business at 1998. Accordingly, we have ranked the business predictability from 5-star to 1-star, as shown in this table.

Predictability Rank	5-Star	4.5-Star	4-Star	3.5-Star	3-Star	2.5-Star	2-Star	1-Star (non-predictable)	Average among all
% Out of All 2403 Stocks	3.3%	2.9%	3.7%	3.3%	3.3%	3.7%	3.3%	76.3%	100%
% that are in Loss (10y)	3%	10%	8%	9%	11%	18%	16%	45%	37%
Average Gain (10y)	364.6%	330.9%	278.0%	235.1%	243.5%	227.8%	154.8%	100.0%	138.1%
Median Gain (10y)	238.5%	193.5%	171.0%	159.0%	132.5%	113.5%	87.0%	13.0%	39.0%
Maximum Gainer	2228.0%	2547.0%	2452.0%	2852.0%	2432.0%	1892.0%	1807.0%	11483.0%	11483.0%
Maximum Loser	-82.0%	-53.0%	-67.0%	-100.0%	-83.0%	-100.0%	-78.0%	-100.0%	-100.0%
Annualized Average Gain	15.4%	14.6%	13.2%	12.0%	12.2%	11.7%	9.1%	6.7%	8.4%
Annualized Median Gain	12.1%	10.6%	9.8%	9.3%	8.2%	7.3%	6.0%	1.1%	3.1%

For detailed information about each predictability rank, please go to GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank

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CareMax (CareMax) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » CareMax Inc (NAS:CMAX) » Definitions » Predictability Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

1000 NW 57th Court, Suite 400, Miami, FL, USA, 33126

Website

https://www.caremax.com

CareMax Inc is a technology-enabled care platform providing value-based care and chronic disease management to seniors. It operates various owned medical centers that offer a comprehensive suite of healthcare and social services and a proprietary software and services platform that provides data, analytics, and rules-based decision tools/workflows for physicians across the United States.

Executives

Bryan Cho	director	30 HUDSON YARDS, 72ND FLOOR, NEW YORK NY 10001
De La Torre Ralph	director, 10 percent owner	4939 BROOKVIEW DRIVE, DALLAS TX 75220
Ryan Oquinn	director	1000 NW 57 COURT, SUITE 400, MIAMI FL 33126
Kevin Berg	director	345 PARK AVENUE SOUTH, 12TH FLOOR, NEW YORK NY 10010
Beatriz Maria Assapimonwait	director	1000 NW 57 CT., SUITE 400, MIAMI FL 33126
Vincent Omachonu	director	1000 NW 57 CT., SUITE 400, MIAMI FL 33126
Jose Ramon Rodriguez	director	PRIMORIS SERVICES CORPORATION, 2300 NORTH FIELD STREET, SUITE 1900, DALLAS TX 75201
Related Cm Advisor, Llc	director	30 HUDSON YARDS, 72ND FLOOR, NEW YORK NY 10001
Imc Holdings, Lp	10 percent owner	525 OKEECHOBEE BOULEVARD, SUITE 1050, WEST PALM BEACH FL 33401
William C. Lamoreaux	officer: EVP	1000 NW 57 CT., SUITE 400, MIAMI FL 33126
Kevin Wirges	officer: EVP, Treasurer and CFO	1000 NW 57 CT., SUITE 400, MIAMI FL 33126
De Solo Carlos A.	director, officer: President and CEO	1000 NW 57 CT., SUITE 400, MIAMI FL 33126
Randy Simpson	director	C/O GLENVIEW CAPITAL MANAGEMENT, LLC, 767 FIFTH AVENUE, 44TH FLOOR, NEW YORK NY 10153
Solo Alberto De	officer: EVP and COO	1000 NW 57 CT., SUITE 400, MIAMI FL 33126
Jennifer L. Carter	director	C/O DFP SPONSOR LLC, 780 THIRD AVENUE, 37TH FLOOR, NEW YORK NY 10017