AMN - AMN Healthcare: Where's The Stopping Point?
2024-04-16 09:26:54 ET
Summary
- AMN Healthcare has an interesting setup that could result in attractive returns for investors in the coming years depending on one's belief about the travel nurse vertical.
- Temporary labor segment is experiencing a rapid decline in volumes and bill rates, but should this stabilize soon, a higher share price might be warranted.
- The Physician & Leadership Solution segment is seeing stable trends, and AMN also has a "hidden" asset with their language interpretation business.
Introduction
AMN Healthcare ( AMN ) is not a business that I’d typically look at given their healthcare exposure broadly, which I tend to categorically avoid (oftentimes for non-rational reasons). That said, I’ve looked at a few staffing agencies in other sectors, so I thought I’d dig in a little here.
AMN has a very interesting setup that could result in an attractive IRRs for investors over the coming years. There’s a lot of uncertainty inherent in the model, but the good fundamental news is that the business is rationally justifiable from a customer's standpoint. I.e., It’s not a question of whether their present-day decline from travel nurse normalization is going to stop, it’s only a matter of when....
AMN Healthcare: Where's The Stopping Point?