Buy or Sell CorVel Stock?

CorVel (CRVL) stock has fallen 26% during the past day, and is currently trading at $51.58. We believe there is not much to fear in CRVL stock given its overall Strong operating performance and financial condition. This is aligned with the stock’s High valuation because of which we think it is Fairly Priced.

Below is our assessment:

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Let’s get into details of each of the assessed factors but before that, for quick background: With $2.6 Bil in market cap, CorVel provides workers’ compensation, auto, liability, and health solutions using AI and machine learning to optimize care management and reduce health care costs for various organizations.

[1] Valuation Looks High

This table highlights how CRVL is valued vs broader market. For more details see: CRVL Valuation Ratios

[2] Growth Is Strong

• CorVel has seen its top line grow at an average rate of 10.6% over the last 3 years
• Its revenues have grown 10% from $846 Mil to $934 Mil in the last 12 months
• Also, its quarterly revenues grew 6.8% to $240 Mil in the most recent quarter from $224 Mil a year ago.

This table highlights how CRVL is growing vs broader market. For more details see: CRVL Revenue Comparison

[3] Profitability Appears Moderate

• CRVL last 12 month operating income was $135 Mil representing operating margin of 14.5%
• With cash flow margin of 15.5%, it generated nearly $145 Mil in operating cash flow over this period
• For the same period, CRVL generated nearly $105 Mil in net income, suggesting net margin of about 11.3%

This table highlights how CRVL profitability vs broader market. For more details see: CRVL Operating Income Comparison

[4] Financial Stability Looks Very Strong

• CRVL Debt was $26 Mil at the end of the most recent quarter, while its current Market Cap is $2.6 Bil. This implies Debt-to-Equity Ratio of 1.0%
• CRVL Cash (including cash equivalents) makes up $207 Mil of $612 Mil in total Assets. This yields a Cash-to-Assets Ratio of 33.9%

[5] Downturn Resilience Is Moderate

CRVL saw an impact slightly worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• CRVL stock fell 37.1% from a high of $69.95 on 3 January 2022 to $43.99 on 16 June 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 10 May 2023
• Since then, the stock increased to a high of $128.46 on 5 February 2025 , and currently trades at $51.58

 
2020 Covid Pandemic

• CRVL stock fell 50.7% from a high of $31.94 on 21 January 2020 to $15.74 on 14 May 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 17 December 2020

 
2008 Global Financial Crisis

• CRVL stock fell 66.6% from a high of $7.99 on 3 January 2007 to $2.67 on 11 December 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 10 November 2010

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read CRVL Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.