Hanger, Inc. (HNGR) Stock Analysis

Hanger, Inc. (HNGR) Healthcare & Pipeline Overview

Hanger, Inc. is a prominent player in the U.S. orthotic and prosthetic (O&P) services market, operating through its Patient Care and Products & Services segments. The company distinguishes itself through its extensive network of patient care clinics and its comprehensive range of O&P devices and rehabilitation technologies, catering to both patients and O&P providers.

What Is the Investment Thesis for HNGR?

Hanger, Inc. presents a compelling investment case based on its established market position in the O&P services industry and its diversified revenue streams. The company's extensive network of patient care clinics and its comprehensive product offerings provide a stable foundation for growth. With a P/E ratio of 17.21 and a gross margin of 64.5%, Hanger demonstrates financial stability. Key growth catalysts include the increasing demand for O&P services due to the aging population and the rising prevalence of diabetes. However, investors may want to evaluate potential risks such as reimbursement pressures and competition from other O&P providers. The company's beta of 1.36 indicates a higher volatility compared to the market, which should be factored into investment decisions.

Based on FMP financials and quantitative analysis

HNGR Key Highlights

Hanger operates approximately 760 patient care clinics and 115 satellite locations across 47 states and the District of Columbia as of December 31, 2021.

• The company's gross margin stands at 64.5%, reflecting its ability to maintain profitability in the O&P services market.
• Hanger's P/E ratio is 17.21, indicating its valuation relative to its earnings.
• The company's beta is 1.36, suggesting higher volatility compared to the overall market.
• Hanger's profit margin is 3.7%.

Who Are HNGR's Competitors?

HNGR is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are HNGR's Key Strengths?

Established market position in the O&P services industry.

• Extensive network of patient care clinics.
• Comprehensive product and service offerings.
• Strong relationships with payors and healthcare providers.

What Are HNGR's Weaknesses?

Exposure to reimbursement pressures from payors.

• Dependence on skilled clinicians and technicians.
• Potential for product liability claims.
• High beta indicating greater volatility than the market.

What Could Drive HNGR Stock Higher?

HNGR catalyst: Increasing demand for O&P services due to the aging population and rising prevalence of diabetes.

• Development and adoption of advanced O&P technologies, such as microprocessor-controlled devices and 3D-printed prosthetics.
• Expansion of Hanger's patient care network and product offerings.
• Strategic acquisitions of smaller O&P providers and technology companies.

What Are the Key Risks for HNGR?

Insider selling — insiders were net sellers of roughly $14.7M recently.

• Reimbursement pressures from payors (insurance companies and government healthcare programs).
• Competition from other O&P providers.
• Product liability claims related to O&P devices.
• Economic downturns impacting patient demand and healthcare spending.
• Dependence on skilled clinicians and technicians.

What Are the Growth Opportunities for HNGR?

• Growth opportunity 1: Expansion of Patient Care Network: Hanger can expand its network of patient care clinics and satellite locations to reach underserved markets and increase its patient base. This expansion can be achieved through acquisitions, partnerships, or the establishment of new clinics. The market for O&P services is expected to grow, driven by the aging population and the rising prevalence of diabetes, presenting a significant opportunity for Hanger to increase its market share. Timeline: Ongoing.
• Growth opportunity 2: Development of Advanced O&P Technologies: Hanger can invest in the development of advanced O&P technologies, such as microprocessor-controlled devices and 3D-printed prosthetics, to improve the functionality and comfort of its devices. These technologies can differentiate Hanger from its competitors and attract patients seeking cutting-edge solutions. The market for advanced O&P technologies is growing rapidly, driven by technological advancements and increasing patient demand. Timeline: Ongoing.
• Growth opportunity 3: Expansion of Products & Services Segment: Hanger can expand its Products & Services segment by offering a wider range of O&P parts, componentry, and devices to independent O&P providers. This expansion can be achieved through strategic partnerships with manufacturers and distributors. The market for O&P products and services is large and fragmented, presenting a significant opportunity for Hanger to increase its sales and market share. Timeline: Ongoing.
• Growth opportunity 4: Enhancement of Clinical Programs: Hanger can enhance its evidence-based clinical programs for post-acute rehabilitation to improve patient outcomes and reduce healthcare costs. These programs can be offered to patients at skilled nursing and post-acute facilities, as well as through Hanger's patient care clinics. The market for post-acute rehabilitation services is growing, driven by the aging population and the increasing prevalence of chronic diseases. Timeline: Ongoing.
• Growth opportunity 5: Strategic Acquisitions: Hanger can pursue strategic acquisitions of smaller O&P providers and technology companies to expand its market presence, enhance its product offerings, and gain access to new technologies. Acquisitions can provide Hanger with a competitive advantage and accelerate its growth. The O&P market is consolidating, presenting opportunities for Hanger to acquire complementary businesses. Timeline: Ongoing.

What Are HNGR's Competitive Advantages?

• Established brand reputation and long operating history (founded in 1861).
• Extensive network of patient care clinics and satellite locations.
• Comprehensive product and service offerings, including custom O&P devices, distribution, and rehabilitation technologies.
• Strong relationships with payors and healthcare providers.
• Proprietary technologies and clinical programs.

What Does HNGR Do?

Founded in 1861 and headquartered in Austin, Texas, Hanger, Inc. has evolved into a leading provider of orthotic and prosthetic (O&P) services in the United States. Originally known as Hanger Orthopedic Group, Inc., the company changed its name in 2012 to reflect its broader range of services and market presence. Hanger operates through two primary segments: Patient Care and Products & Services. The Patient Care segment, operating under the Hanger Clinic brand, specializes in the design, fabrication, and delivery of custom O&P devices. This segment serves patients through an extensive network of patient care clinics and satellite locations across 47 states and the District of Columbia. In addition to direct patient care, the Patient Care segment offers payor network contracting services to other O&P providers. The Products & Services segment focuses on the distribution of O&P parts, componentry, and devices to independent O&P providers. This segment also develops specialized rehabilitation technologies and provides evidence-based clinical programs for post-acute rehabilitation to patients at skilled nursing and post-acute facilities. Furthermore, the Products & Services segment manufactures and sells therapeutic footwear for diabetic patients in the podiatric market. As of December 31, 2021, Hanger operated approximately 760 patient care clinics and 115 satellite locations.

What Products and Services Does HNGR Offer?

• Designs, fabricates, and delivers custom orthotic and prosthetic (O&P) devices.
• Operates a network of patient care clinics and satellite locations.
• Offers payor network contracting services to other O&P providers.
• Distributes O&P parts, componentry, and devices to independent O&P providers.
• Develops specialized rehabilitation technologies.
• Provides evidence-based clinical programs for post-acute rehabilitation.
• Manufactures and sells therapeutic footwear for diabetic patients.

How Does HNGR Make Money?

• Generates revenue from the design, fabrication, and delivery of custom O&P devices through its patient care clinics.
• Earns revenue from the distribution of O&P parts, componentry, and devices to independent O&P providers.
• Receives fees for providing payor network contracting services to other O&P providers.
• Generates revenue from the development and sale of specialized rehabilitation technologies.
• Earns revenue from the manufacture and sale of therapeutic footwear for diabetic patients.

What Industry Does HNGR Operate In?

The U.S. orthotic and prosthetic (O&P) services market is characterized by increasing demand driven by an aging population, rising rates of diabetes, and advancements in O&P technology. Hanger, Inc. operates within this market, competing with other O&P providers such as AORT, APEN, ATRI, CDMO, and CMRX. The industry is subject to regulatory oversight and reimbursement policies, which can impact profitability. Market trends include the adoption of advanced materials and technologies, such as 3D printing and microprocessor-controlled devices, to improve the functionality and comfort of O&P devices.

Who Are HNGR's Key Customers?

• Patients requiring orthotic and prosthetic devices.
• Independent orthotic and prosthetic providers.
• Skilled nursing and post-acute facilities.
• Payors (insurance companies and government healthcare programs).
• Podiatric professionals and diabetic patients.

Return on equity for Hanger, Inc. stands at 52.1%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 4.2%, showing how much profit it generates from its asset base. HNGR trades at a trailing price-to-earnings ratio of 17.21, below the Healthcare sector average of ~23x. A current ratio of 1.40 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 5.8%, the inverse of the P/E and a quick read on earnings relative to price.

Company Profile

Hanger, Inc. operates in the Medical - Care Facilities industry within the Healthcare sector. It is headquartered in Austin, US. The company is led by CEO Vinit Asar. HNGR has traded publicly since 1986.

The most recent 12 insider filings for Hanger, Inc. break down as 12 sales and 0 purchases. On net that is roughly 797K shares disposed (about $14.7M), a signal worth weighing alongside the fundamentals.

HNGR Financials

HNGR Latest News

No recent news available for HNGR.

What Investors Ask About Hanger, Inc. (HNGR) — Healthcare

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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