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Accounts receivable is a big part of revenue for many companies, including the healthcare sector, but it is also a potential source of problems.

Receivables represent money earned but not yet collected, so when receivables become a larger part of the revenue reported by a company, it indicates lower quality revenues. This is because there is no guarantee that the money will be paid back in full.

We ran a screen on stocks from the healthcare sector for those that have seen positive trends in their accounts receivable, with increases in quarterly revenue year-over-year outpacing changes in quarterly accounts receivable. We also screened for companies that have seen a decrease in accounts receivable as a percent of current assets year-over-year.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.


(Click to enlarge)

Do you think these companies are performing well? Use this list as a starting-off point for your own analysis.

List sorted by difference between changes in revenue and accounts receivable.

1. XOMA Ltd. (NASDAQ:XOMA): Engages in the discovery, development, and manufacture of therapeutic antibodies to treat inflammatory, autoimmune, infectious, and oncological diseases. Market cap of $60.54M. MRQ revenue has increased 178.11% ($16.52M vs. $5.94M y/y) while MRQ accounts receivable has increased 29.81% ($11.06M vs. $8.52M y/y). Accounts receivable/current assets has decreased from 37.98% to 17.55%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. This is a risky stock that is significantly more volatile than the overall market (beta = 2.01).The stock has had a good month, gaining 30.99%.

2. Sinovac Biotech Ltd. (NASDAQ:SVA): Engages in the research, development, manufacture, and commercialization of vaccines against the hepatitis A, hepatitis B, and influenza viruses in the People's Republic of China. Market cap of $94.23M. MRQ revenue has increased 52.63% ($15.66M vs. $10.26M y/y) while MRQ accounts receivable has decreased 37.38% ($18.48M vs. $29.51M y/y). Accounts receivable/current assets has decreased from 19.11% to 14.26%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. It's been a rough couple of days for the stock, losing 12.03% over the last week. The stock has had a good month, gaining 13.59%.

3. Luminex Corporation (NASDAQ:LMNX): Develops, manufactures, and sells proprietary biological testing technologies and products for the life sciences and diagnostic industries in the United States. Market cap of $887.24M. MRQ revenue has increased 43.32% ($47.64M vs. $33.24M y/y) while MRQ accounts receivable has decreased 11.26% ($15.69M vs. $17.68M y/y). Accounts receivable/current assets has decreased from 12.0% to 11.45%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. The stock is a short squeeze candidate, with a short float at 6.16% (equivalent to 8.88 days of average volume). It's been a rough couple of days for the stock, losing 7% over the last week.

4. Emergent BioSolutions, Inc. (NYSE:EBS): Develops, manufactures, and commercializes immunobiotics such as vaccines and immune globulins that assist the body's immune system. Market cap of $610.88M. MRQ revenue has increased 41.84% ($88.14M vs. $62.14M y/y) while MRQ accounts receivable has decreased 0.23% ($64.4M vs. $64.55M y/y). Accounts receivable/current assets has decreased from 33.20% to 28.77%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. The stock is a short squeeze candidate, with a short float at 5.59% (equivalent to 6.22 days of average volume). The stock has lost 7.79% over the last year.

5. eResearchTechnology, Inc. (NASDAQ:ERT): Provides technological services and medical devices in North America and the United Kingdom. Market cap of $235.32M. MRQ revenue has increased 47.25% ($42.85M vs. $29.1M y/y) while MRQ accounts receivable has increased 9.0% ($34.52M vs. $31.67M y/y). Accounts receivable/current assets has decreased from 45.54% to 38.11%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. It's been a rough couple of days for the stock, losing 6.09% over the last week.

6. Centene Corp. (NYSE:CNC): Operates as a multiline healthcare company in the United States. Market cap of $1.50B. MRQ revenue has increased 22.13% ($1,315.01M vs. $1,076.77M y/y) while MRQ accounts receivable has decreased 7.47% ($152.13M vs. $164.42M y/y). Accounts receivable/current assets has decreased from 30.12% to 19.64%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. It's been a rough couple of days for the stock, losing 5.72% over the last week. The stock has had a good month, gaining 11.21%.

7. Quidel Corp. (NASDAQ:QDEL): Engages in the development, manufacture, and marketing of diagnostic testing solutions for applications primarily in infectious diseases, and reproductive and women's health. Market cap of $477.65M. MRQ revenue has increased 9.91% ($27.51M vs. $25.03M y/y) while MRQ accounts receivable has decreased 14.70% ($11.37M vs. $13.33M y/y). Accounts receivable/current assets has decreased from 20.64% to 11.39%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. The stock is a short squeeze candidate, with a short float at 19.09% (equivalent to 30.4 days of average volume). The stock has gained 26.65% over the last year.

8. Synergetics USA, Inc. (NASDAQ:SURG): Engages in the design, manufacture, and marketing of microsurgical instruments and consumables primarily for ophthalmology and neurosurgery markets in the United States and internationally. Market cap of $125.35M. MRQ revenue has increased 6.06% ($14.7M vs. $13.86M y/y) while MRQ accounts receivable has decreased 16.58% ($9.36M vs. $11.22M y/y). Accounts receivable/current assets has decreased from 26.03% to 22.41%, comparing 3 months ending 2011-04-30 to 3 months ending 2010-04-30. It's been a rough couple of days for the stock, losing 7.21% over the last week.

9. RTI Biologics, Inc. (NASDAQ:RTIX): RTI Biologics, Inc. and its subsidiaries produce orthopedic and other surgical implants that repair and promote the natural healing of human bone and other human tissues, and improve surgical outcomes. Market cap of $174.86M. MRQ revenue has increased 5.59% ($43.48M vs. $41.18M y/y) while MRQ accounts receivable has decreased 13.40% ($16.42M vs. $18.96M y/y). Accounts receivable/current assets has decreased from 12.84% to 10.41%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. The stock has gained 40.89% over the last year.

10. Hospira Inc. (NYSE:HSP): Develops, manufactures, and markets pharmaceuticals and medication delivery systems in the United States and internationally. Market cap of $6.80B. MRQ revenue has increased 9.90% ($1,064.1M vs. $968.2M y/y) while MRQ accounts receivable has decreased 8.90% ($654.1M vs. $718M y/y). Accounts receivable/current assets has decreased from 28.59% to 25.13%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. It's been a rough couple of days for the stock, losing 10.93% over the last week.

11. China Medical Technologies Inc. (CMED): Develops, manufactures, and markets immunodiagnostic and molecular diagnostic products. Market cap of $163.61M. MRQ revenue has increased 27.36% ($237.11M vs. $186.17M y/y) while MRQ accounts receivable has increased 9.78% ($565.06M vs. $514.73M y/y). Accounts receivable/current assets has decreased from 39.92% to 30.75%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. The stock is a short squeeze candidate, with a short float at 18% (equivalent to 16.26 days of average volume). It's been a rough couple of days for the stock, losing 11.21% over the last week.

12. Providence Service Corp. (NASDAQ:PRSC): Provides and manages government sponsored social services and non-emergency transportation services. Market cap of $114.83M. MRQ revenue has increased 5.84% ($235.31M vs. $222.32M y/y) while MRQ accounts receivable has decreased 9.72% ($86.95M vs. $96.31M y/y). Accounts receivable/current assets has decreased from 54.25% to 51.33%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. It's been a rough couple of days for the stock, losing 15.16% over the last week.

13. Nxstage Medical, Inc. (NASDAQ:NXTM): Engages in the development, manufacture, and marketing of products for the treatment of kidney failure, fluid overload, and related blood treatments and procedures in the United States. Market cap of $970.52M. MRQ revenue has increased 22.18% ($53.77M vs. $44.01M y/y) while MRQ accounts receivable has increased 7.58% ($15.89M vs. $14.77M y/y). Accounts receivable/current assets has decreased from 21.85% to 10.06%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. The stock is a short squeeze candidate, with a short float at 14.47% (equivalent to 11.8 days of average volume). The stock has gained 6.11% over the last year.

14. Teleflex Incorporated (NYSE:TFX): Develops, manufactures, and supplies single-use medical devices used by hospitals and healthcare providers worldwide. Market cap of $2.19B. MRQ revenue has increased 9.17% ($391.29M vs. $358.43M y/y) while MRQ accounts receivable has decreased 5.38% ($308.26M vs. $325.8M y/y). Accounts receivable/current assets has decreased from 31.47% to 26.83%, comparing 3 months ending 2011-06-26 to 3 months ending 2010-06-27. The stock has gained 5.19% over the last year.

15. National Healthcare Corp. (NYSEMKT:NHC): Operates and manages long-term health care centers, and associated assisted living and independent living centers in the United States. Market cap of $433.43M. MRQ revenue has increased 7.83% ($190.78M vs. $176.92M y/y) while MRQ accounts receivable has decreased 5.63% ($66.08M vs. $70.02M y/y). Accounts receivable/current assets has decreased from 23.32% to 20.21%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. Offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 3.83%, current ratio at 1.65, and quick ratio at 1.61. The stock is a short squeeze candidate, with a short float at 5.22% (equivalent to 12. days of average volume). It's been a rough couple of days for the stock, losing 5.29% over the last week.

16. Masimo Corporation (NASDAQ:MASI): Develops, manufactures, and markets noninvasive patient monitoring products worldwide. Market cap of $1.38B. MRQ revenue has increased 9.47% ($109.56M vs. $100.08M y/y) while MRQ accounts receivable has decreased 2.15% ($59.29M vs. $60.59M y/y). Accounts receivable/current assets has decreased from 26.83% to 23.32%, comparing 3 months ending 2011-07-02 to 3 months ending 2010-07-03. The stock is a short squeeze candidate, with a short float at 10.88% (equivalent to 9.65 days of average volume). The stock has lost 10.42% over the last year.

17. AMERIGROUP Corporation (AGP): Operates as a multi-state managed healthcare company. Market cap of $2.21B. MRQ revenue has increased 6.26% ($1,527.43M vs. $1,437.51M y/y) while MRQ accounts receivable has decreased 5.11% ($144.6M vs. $152.38M y/y). Accounts receivable/current assets has decreased from 18.41% to 13.37%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. Might be undervalued at current levels, with a PEG ratio at 0.66, and P/FCF ratio at 5.95. It's been a rough couple of days for the stock, losing 9.57% over the last week.

18. Integramed America Inc. (NASDAQ:INMD): Manages outpatient centers offering products and services to patients and providers in the fertility and vein care segments of the health industry in the United States. Market cap of $94.96M. MRQ revenue has increased 11.79% ($69.05M vs. $61.77M y/y) while MRQ accounts receivable has increased 0.49% ($8.28M vs. $8.24M y/y). Accounts receivable/current assets has decreased from 11.76% to 11.03%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. The stock has lost 12.54% over the last year.

19. The Ensign Group, Inc. (NASDAQ:ENSG): Provides nursing and rehabilitative care services in California, Arizona, Texas, Washington, Utah, Colorado, and Idaho. Market cap of $426.73M. MRQ revenue has increased 17.97% ($186.33M vs. $157.95M y/y) while MRQ accounts receivable has increased 6.91% ($77.7M vs. $72.68M y/y). Accounts receivable/current assets has decreased from 62.74% to 57.79%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. The stock is a short squeeze candidate, with a short float at 6.97% (equivalent to 5.84 days of average volume). It's been a rough couple of days for the stock, losing 8.5% over the last week.

20. Mine Safety Appliances Co. (NYSE:MSA): Develops, manufactures, and supplies health and safety products used by workers in the fire service, homeland security, construction, and other industries, as well as the military. Market cap of $1.01B. MRQ revenue has increased 24.75% ($295.89M vs. $237.19M y/y) while MRQ accounts receivable has increased 15.69% ($218.89M vs. $189.21M y/y). Accounts receivable/current assets has decreased from 43.74% to 43.15%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. Offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 3.77%, current ratio at 2.78, and quick ratio at 1.87. It's been a rough couple of days for the stock, losing 7.27% over the last week.

*Accounting data sourced from Google Finance, all other data sourced from Finviz.

Source: 20 Healthcare Stocks With Positive Accounts Receivable Trends