CorVel Corporation (CRVL) | Investment Case

1. Company Snapshot

1.a. Company Description

CorVel Corporation provides workers' compensation, auto, liability, and health solutions for employers, third party administrators, insurance companies, and government agencies to assist them in managing the medical costs and monitoring the quality of care associated with healthcare claims.It applies technology, including artificial intelligence, machine learning, and natural language processing to enhance the managing of episodes of care and the related health care costs.The company offers network solutions services, including automated medical fee auditing, preferred provider management and reimbursement services, retrospective utilization review, facility claim review, professional review, pharmacy services, directed care services, Medicare solutions, clearinghouse services, independent medical examinations, and inpatient medical bill review.

It also provides a range of patient management services, such as claims management, case management, 24/7 nurse triage, utilization management, vocational rehabilitation, and life care planning, as well as processing of claims for self-insured payors with respect to property and casualty insurance.The company was incorporated in 1987 and is headquartered in Fort Worth, Texas.

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1.b. Last Insights on CRVL

CorVel Corporation's recent performance faced negative drivers, including a decrease in institutional ownership. The State of New Jersey Common Pension Fund D trimmed its holdings by 9.7%, selling 1,769 shares. Conversely, Ethic Inc. bought a new position in CorVel Corp., purchasing 1,934 shares. The company's recent earnings release showed revenues of $240 million, up from $224 million in the same quarter last year, and earnings per share of $0.54, compared to $0.45. A new CFO, Brian Nichols, was also introduced.

1.c. Company Highlights

Last Price	69
Change Percentage	-1.93%
Open	70.75
Previous Close	70.36
Market Cap ( Millions)	3544
Volume	97440
Year High	128.61
Year Low	68.5
M A 50	74.05
M A 200	94.84

FCF Yield	2.77%
Dividend Yield	0.00%
ROE	32.31%
Debt / Equity	8.01%
Net Debt / EBIDTA	-110.18%
Price To Book	10.36
Price Earnings Ratio	35.2
Price To FCF	36.1
Price To sales	3.86
EV / EBITDA	21.3

2. CorVel's Q3 Results: Strong Revenue and EPS Growth

CorVel Corporation reported revenues of $240 million for the September quarter, a 7% increase from $224 million in the same quarter last year. Earnings per share (EPS) were $0.54, a 20% increase over the prior year's EPS of $0.45. The EPS results have been adjusted to account for a 3-for-1 stock split reported in December 2024. Gross margin and net income improved, reaching $28 million, up from $23 million in the previous year. The company's debt-free balance sheet generates improved earnings and positions CorVel well for continued product expansion and acquisition opportunities.

Publication Date: Nov -29

                                    📋 Highlights
                                    Revenue Growth::
                                                Revenues rose to $240 million, a 7% increase from $224 million in the same quarter last year.
Earnings Per Share (EPS) Expansion::
                                                Adjusted EPS climbed 20% to $0.54, though 9 percentage points were offset by one-time events and a 3-for-1 stock split.
AI-Driven Operational Efficiency::
                                                Agentic AI adoption reduced costs, improved decision-making, and enhanced productivity across claims processing and software development.
Debt-Free Balance Sheet::
                                                CorVel achieved $28 million in net income (up from $23 million) and repurchased 69% of outstanding shares for $12.8 million.
Strategic Acquisitions::
                                                Acquisition of a private tech firm in June accelerated AI initiatives, while the CERiS division managed pricing pressure through AI-driven efficiencies.

                                

Operational Highlights

CorVel is addressing industry challenges, including a demographic shift in the workers' compensation field, by investing in people through its CorVel University program, which has delivered exceptional retention rates. The company is also leveraging emerging technology, specifically Agentic AI, to enhance productivity, reduce costs, and accelerate decision-making. As Michael Combs, President and CEO, highlighted, Agentic AI is being used to simplify the work of claims professionals, allowing them to focus on high-value judgment and care coordination.

Segment Performance

Revenue growth was driven by both Patient Management and Network Solutions segments, with revenue growth of $4 million in claims operations and $12 million in Network Solutions. The CERiS division is operating in an environment of elevated pricing pressure, but the company is delivering savings and operational efficiencies through AI-driven enhancements.

Valuation and Outlook

CorVel's current valuation metrics indicate a P/E Ratio of 37.27 and an EV/EBITDA of 22.61. The company's return on equity (ROE) stands at 32.31%, reflecting its efficient use of shareholder capital. With a debt-free balance sheet and improved earnings, CorVel is well-positioned for continued product expansion and acquisition opportunities. The company repurchased 143,774 shares at a cost of $12.8 million, further demonstrating its commitment to returning value to shareholders.

Share Repurchase and Capital Allocation

CorVel has now repurchased 69% of the total shares outstanding, indicating a significant return of capital to shareholders. The company's ability to generate cash and allocate it effectively towards share repurchases and investments in growth initiatives is a positive sign for investors.

3. NewsRoom

Sarah Scott Named to Business Insurance's “Women to Watch” List for 2025

Nov -18

Source: globenewswire.com

CorVel Earns Spot on TIME's America's Growth Leaders 2026 List — the Only Company in Its Industry Recognized

Nov -11

Source: globenewswire.com

CorVel Corporation (CRVL) Q2 2026 Earnings Call Prepared Remarks Transcript

Nov -04

Source: seekingalpha.com

CorVel Announces Revenues and Earnings

Nov -04

Source: globenewswire.com

State of New Jersey Common Pension Fund D Sells 1,769 Shares of CorVel Corp. $CRVL

Nov -03

Source: defenseworld.net

Ethic Inc. Buys Shares of 1,934 CorVel Corp. $CRVL

Nov -01

Source: defenseworld.net

CorVel (NASDAQ:CRVL) vs. Concentrix (NASDAQ:CNXC) Financial Analysis

Oct -24

Source: defenseworld.net

CorVel Corporation to Host Live Earnings Release Webcast

Oct -21

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.34%)

6. Segments

Patient Management

Expected Growth: 8%

CorVel's Patient Management segment growth is driven by increasing adoption of value-based care, rising healthcare costs, and an aging population. The company's technology-enabled services, such as telehealth and care coordination, are in high demand. Additionally, CorVel's expansion into new markets and strategic partnerships are contributing to its 8% growth rate.

Network Solutions

Expected Growth: 12%

CorVel's Network Solutions segment growth is driven by increasing adoption of telehealth services, expansion of existing client relationships, and strategic acquisitions. Additionally, the shift towards value-based care and growing demand for cost-effective healthcare solutions contribute to the 12% growth rate.

7. Detailed Products

Case Management

CorVel's case management services provide a comprehensive approach to managing workers' compensation claims, utilizing a team of experienced professionals to ensure timely and cost-effective resolution.

Bill Review

CorVel's bill review services ensure that medical bills are accurate, complete, and compliant with regulatory requirements, reducing unnecessary costs and improving claims outcomes.

Preferred Provider Network (PPN)

CorVel's PPN provides access to a network of high-quality, cost-effective medical providers, ensuring that injured workers receive appropriate care while reducing medical costs.

Medical Review

CorVel's medical review services provide expert medical opinions and recommendations to ensure that medical treatments are necessary, appropriate, and cost-effective.

Return-to-Work (RTW) Services

CorVel's RTW services help injured workers return to work safely and efficiently, reducing claim duration and costs.

Pharmacy Benefit Management (PBM)

CorVel's PBM services provide a comprehensive approach to managing pharmacy benefits, ensuring that medications are appropriate, safe, and cost-effective.

Medical Bill Review (MBR) Technology

CorVel's MBR technology provides a robust platform for reviewing and processing medical bills, ensuring accuracy, efficiency, and compliance.

8. CorVel Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

CorVel Corporation's services are specialized, but there are some substitutes available in the market, which can be a threat to the company.

Bargaining Power Of Customers

CorVel Corporation's customers are mostly large organizations, which gives them some bargaining power, but the company's specialized services and strong relationships with customers mitigate this power.

Bargaining Power Of Suppliers

CorVel Corporation has a diverse supplier base, and the company is not heavily dependent on a single supplier, which reduces the bargaining power of suppliers.

Threat Of New Entrants

The healthcare industry has high barriers to entry, and CorVel Corporation's specialized services and strong relationships with customers make it difficult for new entrants to compete.

Intensity Of Rivalry

The healthcare industry is competitive, but CorVel Corporation's specialized services and strong market position help the company to maintain its market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	98.91%
Debt Cost	3.95%
Equity Weight	1.09%
Equity Cost	9.38%
WACC	4.01%
Leverage	9102.42%

11. Quality Control: CorVel Corporation passed 7 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

BancFirst

A-Score: 6.8/10

Value: 7.3

Growth: 7.0

Quality: 7.1

Yield: 4.0

Momentum: 7.5

Volatility: 7.7

1-Year Total Return ->

Valley National Bank

A-Score: 6.4/10

Value: 5.9

Growth: 4.6

Quality: 6.4

Yield: 8.0

Momentum: 7.0

Volatility: 6.3

1-Year Total Return ->

Associated Banc

A-Score: 6.0/10

Value: 5.1

Growth: 4.8

Quality: 4.3

Yield: 8.0

Momentum: 7.0

Volatility: 7.0

1-Year Total Return ->

F&G Annuities & Life

A-Score: 5.9/10

Value: 8.4

Growth: 8.4

Quality: 6.2

Yield: 5.0

Momentum: 1.5

Volatility: 6.0

1-Year Total Return ->

Prospect Capital

A-Score: 5.9/10

Value: 6.3

Growth: 3.9

Quality: 6.9

Yield: 10.0

Momentum: 0.0

Volatility: 8.3

1-Year Total Return ->

CorVel

A-Score: 4.0/10

Value: 1.2

Growth: 7.3

Quality: 7.2

Yield: 0.0

Momentum: 1.0

Volatility: 7.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-1.82%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

4.01%

CorVel Corporation - US2210061097

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on CRVL

1.c. Company Highlights

Expensive

Higher Growth

Lower Yield

Stable Momentum

Average Quality

Strong Momentum

Average Growth

Weak Momentum

2. CorVel's Q3 Results: Strong Revenue and EPS Growth

Operational Highlights

Segment Performance

Valuation and Outlook

Share Repurchase and Capital Allocation

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.34%)

6. Segments

Patient Management

Expected Growth: 8%

Network Solutions

Expected Growth: 12%

7. Detailed Products

Case Management

Bill Review

Preferred Provider Network (PPN)

Medical Review

Return-to-Work (RTW) Services

Pharmacy Benefit Management (PBM)

Medical Bill Review (MBR) Technology

8. CorVel Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: CorVel Corporation passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

69.0$

Current Price

69$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA