ASTH is now overvalued and could go down -25%

Based on our analysis, Apollo Medical Holdings has received an overvalued rating of 2 out of 5 stars from Cashu. This rating is primarily influenced by several key financial ratios that indicate potential concerns about the company's valuation compared to its sector. Firstly, the price-to-earnings (PE) ratio for Apollo Medical stands at 31.35, significantly higher than the sector average of 14.78. A high PE ratio suggests that investors are paying more for each dollar of earnings, which may indicate overvaluation, especially when compared to industry peers. Additionally, the return on equity (ROE) for Apollo Medical is 9.89, while the sector average is a negative 75.49. While a positive ROE is typically favorable, it is essential to note that the sector's negative performance raises questions about the sustainability and efficiency of Apollo’s returns relative to its equity base. The company also displays a net profit margin of 4.38, which, although positive, does not reflect the severe challenges faced by the sector overall, as indicated by its average margin of -138.53. This disparity suggests that while Apollo is profitable, its margins are relatively thin compared to the sector's struggles. Lastly, the return on assets (ROA) stands at 6.51 versus the sector's -48.51. Although this indicates that Apollo is effectively utilizing its assets to generate profit, the stark negative performance of the sector again raises concerns about long-term sustainability. This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.