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's recent trajectory has been influenced by a slowdown in growth, with revenues increasing 7% year-over-year. The company's earnings per share rose 16%, driven by margin expansion. However, a recent insider sale of $130,000 worth of shares may indicate diminished confidence. Additionally, the company's certification as a Great Place To Work for the sixth consecutive year reflects its commitment to employee satisfaction, potentially bolstering long-term prospects.

1.c. Company Highlights

Last Price	57.53
Change Percentage	0.12%
Open	58.03
Previous Close	57.46
Market Cap ( Millions)	2948
Volume	132373
Year High	117.22
Year Low	44.83
M A 50	54.09
M A 200	69.93

FCF Yield	3.54%
Dividend Yield	0.00%
ROE	30.14%
Debt / Equity	11.86%
Net Debt / EBIDTA	-110.65%
Price To Book	7.88
Price Earnings Ratio	27.99
Price To FCF	28.28
Price To sales	3.13
EV / EBITDA	16.48

2. CorVel's Q3 Earnings: A Strong Performance Amidst Challenging Trends

CorVel Corporation reported a revenue of $236 million for the December 2025 quarter, a 3% increase from the same quarter in 2024. Earnings per share (EPS) were $0.47, a 2% increase over the same quarter in 2024. For the nine months ending 12/31/2025, CorVel's revenue was $710 million, a 7% increase from the previous fiscal year. EPS for the nine months were $1.53, up 16% compared to the previous year's $1.32. The actual EPS came out at $0.47, slightly lower than the estimated $0.48 is not available but 0.31 was relative to 0.32 estimates. The company's operations netted an income of $24.1 million in December, an increase from $23.8 million in December 2024.

Publication Date: Feb -18

                                    📋 Highlights
                                    9M 2025 Revenue Growth:
                                                Revenue hit $710M, up 7% YoY, driven by network solutions and patient management services.
9M 2025 EPS Increase:
                                                Earnings per share rose to $1.53, a 16% increase over prior-year $1.32.
Q4 2025 Revenue Growth:
                                                December quarter revenue reached $236M, reflecting a 3% YoY increase.
Share Repurchase Activity:
                                                CorVel repurchased 185,559 shares for $13.4M during the quarter.
Operational Net Income:
                                                December 2025 net income rose to $24.1M from $23.8M in December 2024.

                                

Operational Highlights

CorVel highlighted growth in network solutions and patient management services, including independent medical evaluations, serious ancillary care solutions, medical bill review, and claims management. The company is leveraging technology to prioritize claims where it can deliver the greatest impact and generate the strongest return on investment. As Michael Combs emphasized, CorVel is focusing on product innovation, savings through clinical outcomes, and effective management.

Strategic Priorities and Technological Advancements

CorVel is investing in artificial intelligence (AI) and automation, which has improved efficiency and effectiveness in various areas, including claims management and software development. The CERES division is advancing the use of AI, machine learning, and predictive analytics to deliver solutions that are more accurate, scalable, and impactful. This has driven increased business and value for partners, and strengthened CorVel's market position.

Valuation and Financial Metrics

CorVel's P/E Ratio stands at 24.08, indicating a relatively high valuation. The company's strong and debt-free balance sheet positions it for continued strategic product expansion, technological advancement, and acquisition opportunities. The EV/EBITDA ratio is 13.98, and the ROE is 30.14%, indicating a strong return on equity. The Free Cash Flow Yield is 4.11%, which is a positive indicator.

Outlook and Growth Prospects

Analysts estimate next year's revenue growth, although the exact percentage is not specified. The company's focus on product innovation, technological advancements, and effective management is expected to drive growth. CorVel's repurchase of 185,559 shares at a cost of $13.4 million and improvement in days sales outstanding are positive indicators. The company's strong financial position and strategic priorities are likely to drive long-term growth.

3. NewsRoom

CorVel Corporation Launches CorVel Connected™, an AI-Powered Claims Intelligence Layer Embedded in CareMC®

Apr -29

Source: globenewswire.com

Evergreen Capital Management LLC Acquires New Shares in CorVel Corp. $CRVL

Apr -25

Source: defenseworld.net

CorVel (NASDAQ:CRVL) Share Price Passes Below 200-Day Moving Average – Here’s What Happened

Apr -16

Source: defenseworld.net

CorVel (NASDAQ:CRVL) Share Price Crosses Below 200-Day Moving Average – What’s Next?

Mar -31

Source: defenseworld.net

CorVel Insider Sale of $130K Comes Amid 50% One-Year Stock Drop. Here's What Investors Should Know

Mar -25

Source: fool.com

Algert Global LLC Purchases 92,077 Shares of CorVel Corp. $CRVL

Mar -15

Source: defenseworld.net

CorVel: Margin-Driven Upside After Growth Reset

Feb -21

Source: seekingalpha.com

CorVel Earns Sixth Consecutive Great Place To Work® Certification™, Reflecting Continued Investment in Employees and Innovation

Feb -17

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: 6.2/10

Value: 7.5

Growth: 7.0

Quality: 7.4

Yield: 4.0

Momentum: 3.5

Volatility: 8.0

1-Year Total Return ->

Valley National Bank

A-Score: 6.1/10

Value: 6.1

Growth: 4.6

Quality: 5.8

Yield: 8.0

Momentum: 6.0

Volatility: 6.3

1-Year Total Return ->

F&G Annuities & Life

A-Score: 5.7/10

Value: 8.8

Growth: 8.6

Quality: 5.9

Yield: 5.0

Momentum: 0.5

Volatility: 5.7

1-Year Total Return ->

Associated Banc

A-Score: 5.7/10

Value: 5.3

Growth: 4.8

Quality: 4.1

Yield: 8.0

Momentum: 5.0

Volatility: 7.0

1-Year Total Return ->

Prospect Capital

A-Score: 5.5/10

Value: 6.5

Growth: 3.9

Quality: 4.7

Yield: 10.0

Momentum: 0.5

Volatility: 7.7

1-Year Total Return ->

CorVel

A-Score: 4.1/10

Value: 1.4

Growth: 7.2

Quality: 7.2

Yield: 0.0

Momentum: 1.0

Volatility: 7.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-3.53%

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 Earnings: A Strong Performance Amidst Challenging Trends

Operational Highlights

Strategic Priorities and Technological Advancements

Valuation and Financial Metrics

Outlook and Growth Prospects

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

57.53$

Current Price

57.53$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA