Performant Healthcare (NAS:PHLT) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Performant Healthcare Net Margin % Related Terms
Performant Healthcare Net Margin % Historical Data
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The historical data trend for Performant Healthcare's Net Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Health Information Services subindustry, Performant Healthcare's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Performant Healthcare Net Margin % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Performant Healthcare's Net Margin % distribution charts can be found below:
* The bar in red indicates where Performant Healthcare's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Performant Healthcare (PHLT) has a Net Margin % of 5.50% as of Jun. 2025. Net margin is the ratio of total net income to net sales. View historical data on Performant Healthcare and its competitors.
Is Performant Healthcare's Net Margin % too high?
Performant Healthcare's current Net Margin % is 5.50%. The Healthcare Providers & Services industry median Net Margin % is 2.89. Performant Healthcare's value of 5.50% is 90.6% above this industry median. Overall, Performant Healthcare has a GF Score™ of 9/100, reflecting its overall financial health beyond just this single metric.
How does Performant Healthcare's Net Margin % compare to WEAV and HSTM?
Performant Healthcare's Net Margin % of 5.50% can be compared against companies in the Healthcare Providers & Services industry. The industry median Net Margin % is 2.89. Performant Healthcare's value of 5.50% is 90.6% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Healthcare Providers & Services company?
The median Net Margin % among Healthcare Providers & Services companies is 2.89, based on 668 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Performant Healthcare's current Net Margin % of 5.50% is 90.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Performant Healthcare and its competitors. For the Healthcare Providers & Services industry, the median Net Margin % is 2.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Performant Healthcare's current Net Margin % is 5.50%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Performant Healthcare stock overvalued right now?
Performant Healthcare (PHLT) has a current Net Margin % of 5.50%. The stock's GF Value™ is $3.24, compared to a current price of $7.75 — trading 139.2% above its estimated fair value. The current Net Margin % is 5.50% and 90.6% above the Healthcare Providers & Services industry median of 2.89. Performant Healthcare's overall GF Score™ is 9/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Performant Healthcare (PHLT), the current Net Margin % is 5.50% as of Jun. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Performant Healthcare (PHLT) Overvalued in 2026?
Based on GuruFocus' analysis, Performant Healthcare stock appears to be overvalued.
The current stock price of $7.75 is trading 139.2% above its estimated GF Value™ of $3.24.
Key valuation signals for PHLT:
Net Margin %: 5.50%
GF Value™: $3.24 vs. price of $7.75 (139.2% above fair value)
Industry Position: 90.6% above the Healthcare Providers & Services median
No single metric tells the full story. See the PHLT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Performant Healthcare Inc provides solutions to payers in the healthcare industry to identify, prevent, and recover waste and improper payments by leveraging technology, analytics, and proprietary data assets.
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