revenue growth
6–8 pct
FY 2027
official guidance
COVISTA INC.
Last · —$129.48+0.34 (+0.26%)live · yahoo · 3h ago
Market cap$4.40B—
P/E · TTM17.3fwd — · eps —
Beta—vs S&P 500
Div yield—annual · TTM
52w range
——
Volume—session
| Revenue | $1.9B |
|---|---|
| Operating income | $364.9M |
| Net income | $234.1M |
| Free cash flow | $336.3M |
| Operating margin | 19.1% |
| Net margin | 12.3% |
| Return on equity | 17.2% |
| Period | TTM 2026-03-31 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Strong execution history and cash generation support the investment case despite execution and financing risks.
Buy: Covista outlined a credible multi-year growth plan, with revenue growth accelerating from 6%-8% in FY27 to 8%-11% in FY29, FY29 revenue of $2.35-$2.53 billion, and EPS of $10.60-$11.80.
The bull case is strong healthcare demand, underutilized medical capacity, Chamberlain expansion and operating leverage; the key tension is that FY27 investment spending arrives before new campuses and partnerships contribute materially.
Themes
- Healthcare Workforce
- Chamberlain Expansion
- Employer Partnerships
- Student Financing
- Ai In Education
- Medical Veterinary Capacity
Near term
FY26 guidance remains intact: at least 26.7% EBITDA margin, more than $500 million of EBITDA, and EPS approaching $8.
Student-financing changes take effect July 1, including elimination of Grad PLUS for new borrowers; management reported no demand or application slowdown, but private-credit adoption remains an important near-term test.
Medical and veterinary enrollment, where management cited demand exceeding available seats by more than 2x, can provide near-term upside through existing capacity.
Announcements of additional health-system partnerships will be an important validation of the SSM employer-funded nursing model; management expects initial announcements in the near term.
Longer term
Revenue growth is guided to 6%-8% in FY27, 7%-10% in FY28 and 8%-11% in FY29, with EPS growth of 9%-13%, 10%-14% and 12%-16%, respectively.
Chamberlain plans four new campuses, mostly in states where it has no current presence. Management said new campuses reach EBITDA profitability about two years after teaching begins.
The SSM Aspiring Nurse Program produced a 117% year-over-year increase in St. Louis applications and a 200% increase in Oklahoma online applications, potentially creating a scalable employer-funded enrollment channel.
AI appears more likely to improve student persistence, marketing productivity and support than disintermediate accredited clinical education, which remains protected by accreditation, clinical-placement networks and licensing requirements.
Capital deployment remains flexible: $750 million of repurchase authorization is available, while the three-year forecast excludes M&A.
Red flags
FY27 is an investment year, and management did not quantify the campus, technology or partnership spending burden; new capacity is expected to ramp gradually.
The employer-partnership thesis is promising but still concentrated in an early SSM pilot. Management offered no contracted revenue, margin or customer-pipeline figures for the broader opportunity.
Grad PLUS elimination could reduce student liquidity even if tuition falls below stated loan limits. Reliance on Sallie Mae and other commercial lenders introduces underwriting, affordability and repayment risks that management largely dismissed.
Management's AI moat argument is plausible but largely qualitative. The claimed benefits from personalization, persistence and content productivity have not yet been translated into quantified revenue or margin contribution.
The forecast assumes continued execution across enrollment, persistence, pricing and new-state approvals while also expanding margins; any slowdown in healthcare demand or regulatory scrutiny would pressure the model.
Forward outlook
revenue growth
7–10 pct
FY 2028
official guidance
revenue growth
8–11 pct
FY 2029
official guidance
revenue
2350–2530 $million
FY 2029
official guidance
eps diluted
9–13 pct
FY 2027
official guidance
eps diluted
10–14 pct
FY 2028
official guidance
eps diluted
10.6–11.8 $per share
FY 2029
official guidance
ebitda
—
FY 2026
official guidance
ebitda
—
FY 2026
official guidance
Recommendation history
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
From latest 10-K · 2025-08-07
- Current Ratio Low
Red flags
- Current Ratio Low — Current ratio 0.82
Upcoming earnings
9:00 PM UTC+1
Period
Sep 2026
Est. EPS
$1.83
Est. revenue
490.7M
Earnings transcripts
Documents
FormReporting forFiledFlags