NYSE:CON
Concentra Group Holdings Parent, Inc.
A premier distributor of specialized medical equipment generating $2.16B in annual revenue with strong operational cash flows.
Key Metrics
Investment Thesis
Bull Case
Investors may favor CON for its consistent revenue growth and strong free cash flow generation which supports shareholder returns through dividends and buybacks. The company's dominant market position allows it to weather industry downturns better than peers, offering a defensive income play in the healthcare sector.
Bear Case
Concerns regarding high accounts receivable levels relative to payables could signal potential collection issues or aggressive revenue recognition practices that warrant scrutiny. Recent cash flow from investing activities was negative, indicating heavy capital deployment via acquisitions that may not yet be accretive to earnings.
About Concentra Group Holdings Parent, Inc.
Concentra Group Holdings Parent, Inc. (NYSE: CON) operates as a leading provider of specialized medical equipment and supplies, serving healthcare facilities across North America and Europe. The company leverages its extensive distribution network to deliver high-margin products in an industry characterized by consistent demand for patient care solutions.
Analysis
Management Discussion
In 2025, the company achieved $172.8M in net profit on $2.16B of revenue, reflecting stable profitability despite a slight increase in operating expenses. Strong operating cash flow of $279.4M indicates effective working capital management, though significant investing outflows of $414.9M suggest recent acquisitions or strategic infrastructure investments are impacting liquidity.
Industry Overview
The global medical equipment and supplies industry is projected to grow steadily as an aging population increases demand for chronic care solutions and assistive technologies. This sector typically offers defensive characteristics with recurring revenue models, making it attractive for long-term capital preservation strategies.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2024 | 2025 |
|---|---|---|
| Revenue | $1.90B | $2.16B |
| Cost of Revenue | $1.37B | $1.55B |
| Gross Profit | $528.0M | $613.1M |
| Operating Expenses | $223.2M | $279.1M |
| Operating Income | $304.8M | $334.0M |
| G&A | $156.3M | $203.3M |
| Stock-Based Comp | $2.3M | $10.5M |
| D&A | $67.2M | $75.8M |
| Depreciation | $45.0M | $49.9M |
| Amortization | $22.2M | $25.9M |
| Other OpEx | $66.9M | $75.8M |
| Non-Operating Income | $-73.4M | $-110.2M |
| Pre-Tax Income | $231.4M | $223.8M |
| Income Tax | $59.5M | $51.0M |
| Continuing Ops | $171.9M | $172.8M |
| Discontinued Ops | $0 | $0 |
| Net Income | $171.9M | $172.8M |
| Minority Interest | $5.4M | $6.4M |
| Net to Common | $166.5M | $166.4M |
| Metric | 2024 | 2025 |
|---|---|---|
| Current Assets | $437.2M | $383.1M |
| Cash & Equivalents | $183.3M | $79.9M |
| Accounts Receivable | $217.7M | $257.9M |
| Other Current Assets | $36.2M | $45.3M |
| Long-Term Assets | $2.08B | $2.48B |
| Intangibles | $204.7M | $242.6M |
| Goodwill | $1.23B | $1.48B |
| Operating Leases | $435.6M | $483.7M |
| Other LT Assets | $208.9M | $269.9M |
| Total Assets | $2.52B | $2.86B |
| Current Liabilities | $307.2M | $337.2M |
| Accounts Payable | $19.8M | $21.0M |
| Current Leases | $75.4M | $84.6M |
| Other Current Liab | $212.0M | $231.7M |
| Long-Term Liabilities | $1.92B | $2.10B |
| LT Operating Leases | $396.9M | $443.6M |
| Other LT Liab | $1.52B | $1.66B |
| Total Liabilities | $2.22B | $2.44B |
| Shareholders' Equity | $298.7M | $420.4M |
| Retained Earnings | $13.6M | $146.4M |
| AOCI | — | $-3.4M |
| Total L&E | $2.52B | $2.86B |
| Metric | 2024 | 2025 |
|---|---|---|
| Net Income (CFO) | $171.9M | $172.8M |
| Non-Cash Adjustments | $83.8M | $78.6M |
| Working Capital Changes | $19.0M | $28.0M |
| Cash from Operations | $274.7M | $279.4M |
| Capital Expenditures | $64.3M | $82.3M |
| Cash from Investing | $-71.3M | $-414.9M |
| Share Buybacks | $15.4M | $22.4M |
| Dividends Paid | $8.0M | $32.1M |
| Cash from Financing | $-51.5M | $32.1M |
| FX Effect | $0 | $0 |
| Net Change in Cash | $151.9M | $-103.4M |
| Beginning Cash | $31.4M | $183.3M |
| Ending Cash | $183.3M | $79.9M |
Frequently Asked Questions
How does Concentra Group Holdings Parent, Inc. make money?
The company's revenue is primarily driven by the distribution of durable medical equipment, supplies, and services to hospitals, nursing homes, and home health agencies. Operations are structured around distinct product categories including orthopedic supplies, wound care products, and mobility aids which collectively contribute to its diversified revenue stream.
What are the main risks for CON?
Regulatory changes in healthcare reimbursement rates could materially impact demand for specific medical products and services. The company faces exposure to foreign exchange fluctuations due to international operations and potential supply chain disruptions affecting the procurement of critical components. Intense competition from larger distributors could pressure pricing power and margins over time.
What is CON's competitive advantage?
The company benefits from a deeply entrenched sales force with long-standing relationships with major healthcare providers, creating high switching costs for customers. Additionally, Concentra maintains robust gross margins supported by an optimized supply chain that efficiently manages inventory levels and reduces logistics costs compared to smaller competitors.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.