Net Margin - CorVel Corp (NASDAQ:CRVL)

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Price: 70.24 USD -0.83%

Market Cap: 3.6B USD

11.3%

Current

10%

Average

1.8%

Industry

Net Margin measures how much net income is generated as a percentage of revenues received. It helps investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Net Margin

11.3%

Net Income

105.3m

Revenue

933.8m

Net Margin Across Competitors

Country		Company	Market Cap	Net Margin
US		CorVel Corp NASDAQ:CRVL	3.6B USD	11%
US		CVS Health Corp NYSE:CVS	98.8B USD	0%
US	C	Cigna Group XMUN:CGN	62.3B EUR	2%
US		Cigna Corp NYSE:CI	73B USD	2%
DE		Fresenius SE & Co KGaA XETRA:FRE	27B EUR	5%
DE		Fresenius Medical Care AG XMUN:FME	23.5B EUR	4%
US		Laboratory Corporation of America Holdings NYSE:LH	20.9B USD	6%
US		Quest Diagnostics Inc NYSE:DGX	19.6B USD	9%
DE	F	Fresenius Medical Care AG & Co KGaA XETRA:FME	11.7B EUR	4%
US		Guardant Health Inc NASDAQ:GH	12.1B USD	-44%
US		DaVita Inc NYSE:DVA	8.2B USD	6%

CorVel Corp
Glance View

Economic Moat

None

Market Cap

3.6B USD

Industry

Health Care

In the intricate world of healthcare management, CorVel Corporation stands as a pivotal player, harmonizing technology and service to streamline the complexities of risk management and cost containment. Founded in 1987, CorVel has relentlessly pursued the mission of enhancing workplace injury claims processes, reducing expenses while ensuring quality care for the injured. The company's foundation is built on its ability to provide innovative solutions through advanced technology platforms that automate and optimize the management of workers’ compensation, liability claims, and healthcare services. By integrating data analytics, artificial intelligence, and cutting-edge claims management software, CorVel enables employers, insurers, and third-party administrators to keep a tight rein on costs and improve outcomes through proactive decision-making and efficient service delivery. CorVel’s revenue model is intricately tied to its suite of diversified services. The company generates income through its extensive offerings in network solutions, bill review, case management, and pharmacy benefit management. Network solutions form the backbone, providing clients with access to a broad network of medical providers while negotiating favorable rates. Meanwhile, their robust bill review system ensures that every medical claim is scrutinized for accuracy and compliance, a process that helps clients avoid overpayments and recover funds. Case management services further augment their revenue, as skilled professionals facilitate rehabilitation efforts, coordinate care, and monitor recovery progress to encourage cost savings. Moreover, the pharmacy benefit management branch secures additional profit by optimizing prescription costs and improving medication adherence. Together, these services create a seamless ecosystem where CorVel captures significant value through efficiency gains and cost control, solidifying its position in the competitive healthcare management landscape.

View CRVL Analysis

CRVL Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

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CorVel Corp
NASDAQ:CRVL