Veradigm Inc. (MDRX), a healthcare technology company, wIll not file its annual report on time after misstating financials between 2020-2022, including:

“...misstatements to the Company’s previously reported revenue resulting from certain internal control failures.…”.

The disclosure did not quantify the error.

Notably, the restatements will be to previously restated financials that took the company years to file with the Securities and Exchange Commission (SEC).

Veradigm did not file its 2022 annual report— which included a restatement of its 2020 and 2021 financials— until March 18, 2025.

The accounting trouble, according to Veradigm, will also bleed into Q1 2024.

It does not appear Veradigm has filed an annual report in the last three years.

With a threat of delisting looming, the company says it’s doing its best to file its belated annual reports on time.

NOTE: Remember, Veradigm has not filed an annual report for the last three years, meaning our model drivers are dated and based on financials that may or may not be accurate.

With an Enterprise Value (EV) of approximately $984 million, Veradigm is priced as if it will grow annual sales to nearly $1 billion, up from an estimated $585.5 million in 2025. To justify its current share price of $4.55 our Reverse DCF— which quantifies investor expectations embedded in the current share price— indicates Veradigm must:

—Grow sales 6.1% annually for the next decade, faster than the consensus 2025 estimate which is flat with 2022 sales
—Increase NOPAT margin to 6.25%, versus our 2022 estimate of (12.54%)
—Increase Invested Capital (IC) Turns to 1.2, up from our 2022 estimate of 0.12

Notably, the current share price also implies Veradigm increases Return on Invested Capital (ROIC) to 7.5% from our 2022 estimate of (8.31%):