| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 69.13 | 451 |
| Intrinsic value (DCF) | 0.00 | -100 |
| Graham-Dodd Method | 6.33 | -50 |
| Graham Formula | 10.39 | -17 |
Cross Country Healthcare, Inc. (NASDAQ: CCRN) is a leading provider of healthcare workforce solutions, specializing in nurse and allied staffing, physician staffing, and talent management services. Founded in 1986 and headquartered in Boca Raton, Florida, the company serves a broad range of healthcare clients, including hospitals, government facilities, outpatient clinics, and managed care organizations. Cross Country operates under two primary segments: Nurse and Allied Staffing, which offers temporary, permanent, and contract placements, and Physician Staffing, which provides locum tenens professionals. The company’s workforce solutions, including managed services (MSP) and recruitment process outsourcing (RPO), cater to the growing demand for flexible healthcare staffing amid industry-wide labor shortages. With a market cap of approximately $443 million, Cross Country plays a critical role in the U.S. healthcare staffing sector, leveraging its national footprint and consultative approach to address staffing challenges. Its diversified service offerings position it as a key player in an industry driven by demographic trends, regulatory changes, and evolving care delivery models.
Cross Country Healthcare presents a mixed investment profile. The company benefits from strong demand for healthcare staffing due to persistent labor shortages and an aging population, supported by its diversified service offerings and established client relationships. However, its recent financial performance reflects challenges, including a net loss of $14.6 million in the latest fiscal year and negative diluted EPS of -$0.44. While operating cash flow remains positive ($120.1 million), investors should monitor margin pressures and competitive dynamics in the fragmented staffing industry. The company’s low beta (0.382) suggests relative stability, but its lack of dividends and reliance on cyclical demand may limit appeal to income-focused investors. Long-term growth hinges on its ability to scale higher-margin solutions like MSP and RPO while navigating wage inflation and regulatory risks.
Cross Country Healthcare competes in the highly fragmented U.S. healthcare staffing market, where differentiation is driven by scale, specialization, and service quality. The company’s competitive advantage lies in its dual-segment focus (nurse/allied and physician staffing), which allows it to address a broader range of client needs compared to niche players. Its Cross Country and Cross Country Locums brands are well-recognized, supported by a national infrastructure that enables rapid placement of professionals across geographies. However, the company faces intense competition from larger rivals like AMN Healthcare, which boasts greater scale and technological capabilities, and smaller regional firms that may offer lower-cost alternatives. Cross Country’s consultative approach and MSP/RPO solutions provide sticky client relationships, but its profitability lags behind some peers, reflecting pricing pressures and operational inefficiencies. The company’s ability to integrate technology (e.g., AI-driven matching platforms) and expand higher-margin services will be critical to maintaining its position. Additionally, its physician staffing segment competes with specialized locum tenens firms, where differentiation relies on recruiter expertise and fill rates. While Cross Country’s diversified model mitigates concentration risk, its mid-tier scale may limit bargaining power with both clients and candidates in a tight labor market.