CareCloud (CCLD) AI Stock Analysis

• Market Cap: $62.21M
• Dividend Yield: N/A
• Average Volume (3M): 1.53M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.40
• Revenue Growth: -5.32%
• EPS Growth: 95.20%
• Country: US
• Employees: 3,650
• Sector: Healthcare
• Sector Strength: 72
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -0.20
• Shares Outstanding: 42,316,513
• 10 Day Avg. Volume: 733,849
• 30 Day Avg. Volume: 1,533,200
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.58
• Price to Cash Flow (P/CF): 3.10
• P/FCF Ratio: 3.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $3.75
• Price Target Upside: 155.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

CareCloud's stock score reflects a balanced view of its financial stability and positive earnings outlook, countered by current market technical weaknesses and valuation challenges. The company's strong cash flow and operational achievements position it well for future growth, despite the need for improved market sentiment and valuation metrics.

Positive Factors

Cost Management

The company has achieved substantial annualized expense savings by leveraging AI and reducing reliance on third-party vendors.

Earnings

Expense control, AI initiatives, and launching special EHR solutions contributed to beating revenue and EBITDA estimates.

Financial Performance

Record levels of adjusted EBITDA, net income, and free cash flow indicate strong financial performance.

Negative Factors

Client Churn

3Q24 top-line performance was impacted by previously-disclosed churn of two hospital clients that merged.

Revenue Forecast

The flattening 2025 outlook has led to a lowering of the revenue forecasts, impacting the stock rating to Neutral from Buy.

Valuation

The company's valuation improvement is limited due to a more muted revenue growth outlook and a heavy debt burden.

CareCloud Business Overview & Revenue Model

Company Description

CareCloud, Inc. (CCLD) is a healthcare technology company that provides cloud-based solutions for healthcare providers. It operates in the healthcare IT sector, focusing on delivering a comprehensive suite of solutions designed to enhance clinical, financial, and administrative workflows for medical practices. CareCloud's core products and services include electronic health records (EHR), practice management software, revenue cycle management (RCM) solutions, and patient experience management tools, all aimed at improving the efficiency and profitability of healthcare practices.

How the Company Makes Money

CareCloud makes money through a combination of subscription and service fees for its technology solutions. The company primarily generates revenue by offering its software-as-a-service (SaaS) platform to healthcare providers, who pay recurring subscription fees to access its suite of cloud-based tools. Additionally, CareCloud earns revenue through revenue cycle management services, where it provides billing and collection services for healthcare practices, often taking a percentage of the collections as a fee. The company may also engage in strategic partnerships and collaborations that can enhance its product offerings and expand its market reach, thereby contributing to its revenue growth.

CareCloud Financial Statement Overview

Summary

CareCloud exhibits a solid financial foundation with strengths in balance sheet stability and cash flow generation. However, income statement volatility highlights the need for consistent revenue and profit growth to support long-term financial health.

Income Statement

The income statement shows a mixed performance. Revenue has fluctuated over the years, with a notable decline in 2023. Gross profit margins are strong, but net profit margins have been volatile, swinging from positive to negative in recent years. The EBIT and EBITDA margins have also shown inconsistency, reflecting operational challenges.

Balance Sheet

The balance sheet is relatively strong with a solid equity base and low debt levels, resulting in a favorable debt-to-equity ratio. The equity ratio is robust, indicating a strong capital structure. However, the drop in total assets suggests potential asset management issues.

Cash Flow

Cash flow statements show positive trends with improving free cash flow growth and strong operating cash flow to net income ratios. The company has managed to increase free cash flow significantly despite fluctuations in capital expenditures.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
110.84M	117.06M	138.83M	139.60M	105.12M
	Gross Profit
110.84M	46.24M	54.39M	52.68M	40.30M
	EBIT
9.12M	-47.12M	4.06M	3.53M	-8.26M
	EBITDA
9.12M	-31.29M	21.02M	19.22M	4.57M
	Net Income Common Stockholders
7.85M	-48.67M	5.43M	2.84M	-8.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.14M	3.33M	12.30M	9.34M	20.93M
	Total Assets
71.61M	77.83M	136.17M	140.85M	138.00M
	Total Debt
3.47M	14.73M	13.81M	16.87M	11.47M
	Net Debt
-1.68M	11.40M	1.51M	7.53M	-9.46M
	Total Liabilities
21.84M	36.11M	34.48M	42.92M	36.75M
	Stockholders Equity
49.77M	41.72M	101.69M	97.93M	101.25M
Cash Flow		Free Cash Flow
18.95M	3.85M	9.38M	2.77M	-8.64M
	Operating Cash Flow
20.64M	15.46M	21.15M	13.33M	-892.00K
	Investing Cash Flow
-7.41M	-11.61M	-11.77M	-23.15M	-31.47M
	Financing Cash Flow
-11.26M	-13.29M	-7.65M	-519.00K	33.42M

CareCloud Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.47
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCLD, the sentiment is Negative. The current price of 1.47 is below the 20-day moving average (MA) of 1.83, below the 50-day MA of 2.92, and below the 200-day MA of 2.73, indicating a bearish trend. The MACD of -0.44 indicates Negative momentum. The RSI at 27.66 is Positive, neither overbought nor oversold. The STOCH value of 23.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CCLD.

CareCloud Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSTM	67 Neutral	$974.81M	48.90	5.72%	0.35%	4.51%	32.28%
CCLD	65 Neutral	$62.21M	―	17.16%	―	-5.32%	95.20%
NRC	54 Neutral	$296.23M	12.37	61.77%	3.72%	-3.72%	-17.12%
Sector *	49 Neutral	$6.85B	0.81	-52.91%	2.50%	17.48%	1.17%

CareCloud Corporate Events

CareCloud Declares Dividends and Converts Preferred Stock

On March 14, 2025, CareCloud announced that its Board of Directors declared monthly cash dividends for its Series A and Series B Cumulative Redeemable Perpetual Preferred Stock for March and April 2025. The dividends reflect an 8.75% annual rate, with additional payments for Series A due to previous higher dividend rates. The announcement also noted the mandatory conversion of Series A Preferred Stock into common stock on March 6, 2025, leading to its delisting from the Nasdaq Global Market. This move may impact stakeholders by altering the company’s stock structure and market presence.

CareCloud Reports Strong Financial Turnaround in 2024

On March 13, 2025, CareCloud reported strong financial results for the full year 2024, marking a significant turnaround from 2023. The company achieved a GAAP net income of $7.9 million, compared to a net loss of $48.7 million the previous year, and adjusted EBITDA increased by 56% to $24.1 million. The company also resumed preferred dividends and fully repaid its credit line, positioning itself for future growth. CareCloud’s strategic execution and AI-driven innovation have contributed to its improved financial performance and strengthened balance sheet, setting the stage for continued profitability and long-term growth.

CareCloud Approves Major Increase in Authorized Shares

On January 27, 2025, CareCloud, Inc. shareholders approved a significant amendment to the company’s certificate of incorporation, increasing the number of authorized common stock shares from thirty-five million to eighty-five million. This amendment, effective February 5, 2025, suggests a strategic move by CareCloud to potentially raise more capital or expand its operations, which could impact its market positioning and stakeholder interests.

CareCloud Increases Authorized Shares to 85 Million

On January 27, 2025, CareCloud, Inc. held a special meeting where a record-breaking number of shareholders approved an amendment to increase the authorized shares of common stock from 35 million to 85 million. This decision reflects strong shareholder support and positions the company for potential growth, indicating confidence in its future operations and market strategy.

CareCloud Resumes Dividend Payments Reflecting Strong Performance

On January 21, 2025, CareCloud announced the early resumption of dividend payments for its Series A and Series B Cumulative Redeemable Perpetual Preferred Stock, reflecting strong financial performance and a commitment to shareholder value. The company has declared dividends for January and February 2025 and intends to maintain a higher dividend rate for a period before adjusting to a lower rate, highlighting its success in accelerating free cash flow and its focus on achieving profitability and growth.