Healthcare Triangle (HCTI) AI Stock Analysis

• Market Cap: $10.12M
• Dividend Yield: N/A
• Average Volume (3M): 5.32M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.33
• Revenue Growth: -64.77%
• EPS Growth: 43.53%
• Country: US
• Employees: 22
• Sector: Healthcare
• Sector Strength: 77
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -1.16
• Shares Outstanding: 45,211,422
• 10 Day Avg. Volume: 762,133
• 30 Day Avg. Volume: 5,322,535
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.13
• Price to Cash Flow (P/CF): 0.70
• P/FCF Ratio: 0.70
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Healthcare Triangle is facing substantial financial challenges with negative revenue growth, persistent losses, and negative equity. The technical analysis indicates a bearish trend, with the stock trading below key moving averages. The lack of positive earnings and dividend yield further exacerbates the company's weak position. These factors collectively contribute to a low overall stock score.

Healthcare Triangle Business Overview & Revenue Model

Company Description

Healthcare Triangle (HCTI) is a leading provider of cloud and data transformation services tailored to the healthcare and life sciences sectors. The company leverages its expertise in cloud technology, data analytics, and security to offer solutions that enhance operational efficiency, compliance, and patient outcomes. HCTI's core services include cloud migration, managed services, data analytics, and AI-powered solutions designed to meet the unique needs of healthcare organizations.

How the Company Makes Money

Healthcare Triangle generates revenue primarily through its comprehensive suite of cloud and data services offered to healthcare providers, payers, and life sciences companies. The company makes money by delivering subscription-based cloud services, consulting fees for data analytics and transformation projects, and managed services contracts. Additionally, HCTI partners with major cloud providers like AWS, Google Cloud, and Microsoft Azure, which enhances its service offerings and expands its market reach. These strategic partnerships, along with a focus on innovation and compliance with healthcare regulations, are significant factors contributing to its earnings.

Healthcare Triangle Financial Statement Overview

Summary

Healthcare Triangle is facing substantial financial challenges. Declining revenues, negative profitability, and a weak balance sheet with negative equity pose significant risks. While there are slight improvements in cash flow, the company's financial stability and profitability remain questionable.

Income Statement

Healthcare Triangle has experienced declining revenue over recent periods, with a significant drop in TTM (Trailing-Twelve-Months) revenue compared to the prior year. Profitability metrics such as gross and net profit margins are negative, indicating operational challenges and profitability issues. The company has also consistently reported negative EBIT and EBITDA margins, reflecting struggles in cost management and efficiency.

Balance Sheet

The balance sheet reveals a concerning financial structure with negative stockholders' equity in the TTM, indicating potential solvency issues. The company has a high debt-to-equity ratio due to negative equity, posing financial risk. Return on equity is also negative, reflecting ongoing losses. Additionally, the equity ratio is negative, suggesting that liabilities exceed assets, which is a significant risk factor.

Cash Flow

Despite negative operating cash flow in previous years, the company managed to achieve positive cash flow in the TTM, which is a positive sign for liquidity. However, free cash flow has been inconsistent, with substantial fluctuations over the years. The operating cash flow to net income ratio shows some improvement, yet cash flow remains volatile and uncertain.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
16.57M	33.20M	45.89M	35.27M	31.34M	28.74M
	Gross Profit
3.63M	6.78M	11.29M	10.52M	8.59M	5.85M
	EBIT
-9.27M	-11.35M	-10.42M	-5.36M	1.18M	1.67M
	EBITDA
-3.02M	-4.10M	-5.96M	-3.94M	1.98M	2.45M
	Net Income Common Stockholders
-9.95M	-12.34M	-9.61M	-5.95M	2.35M	1.17M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
974.83K	1.23M	1.34M	1.77M	1.40M	974.83K
	Total Assets
0.00	10.05M	20.76M	24.61M	11.11M	8.25M
	Total Debt
0.00	4.32M	2.41M	3.45M	754.40K	0.00
	Net Debt
974.83K	3.08M	1.07M	1.68M	-648.30K	-974.83K
	Total Liabilities
0.00	9.51M	8.38M	8.48M	6.78M	6.28M
	Stockholders Equity
1.97M	538.00K	12.39M	16.13M	4.33M	1.97M
Cash Flow		Free Cash Flow
938.00K	-1.63M	-5.92M	-10.42M	-1.21M	318.86K
	Operating Cash Flow
944.00K	-1.61M	-2.60M	-7.29M	-734.67K	3.97M
	Investing Cash Flow
-6.00K	-13.00K	-3.32M	-7.63M	-477.46K	-3.65M
	Financing Cash Flow
-985.00K	1.52M	5.49M	15.29M	1.64M	0.00

Healthcare Triangle Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HCTI, the sentiment is Negative. The current price of 0.22 is below the 20-day moving average (MA) of 0.34, below the 50-day MA of 0.48, and below the 200-day MA of 0.66, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 39.10 is Neutral, neither overbought nor oversold. The STOCH value of 9.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HCTI.

Healthcare Triangle Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	48 Neutral	$6.35B	1.19	-46.87%	2.63%	17.16%	1.34%
GLMD	40 Underperform	$2.22M	―	-49.77%	―	―	73.90%
MTNB	38 Underperform	$2.70M	―	-108.57%	―	-100.00%	6.87%
SXTP	37 Underperform	$2.61M	―	-178.39%	―	168.70%	31.57%
QLGN	31 Underperform	$2.31M	―	367.65%	―	-100.00%	69.07%
HCTI	26 Underperform	$10.12M	―	-292.41%	―	-64.77%	43.53%