Joint (JYNT) AI Stock Analysis

• Market Cap: $159.35M
• Dividend Yield: N/A
• Average Volume (3M): 84.98K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.07
• Revenue Growth: -11.10%
• EPS Growth: 13.57%
• Country: US
• Employees: 443
• Sector: Healthcare
• Sector Strength: 71
• Industry: Medical - Care Facilities
• EPS (TTM): -0.57
• Shares Outstanding: 15,322,532
• 10 Day Avg. Volume: 91,636
• 30 Day Avg. Volume: 84,979
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.72
• Price to Cash Flow (P/CF): 11.70
• P/FCF Ratio: 11.70
• 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: $15.17
• Price Target Upside: 45.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

Joint Corp. presents a mixed investment case. While the company shows strong revenue growth and strategic refranchising efforts, profitability challenges and economic headwinds weigh on its outlook. The technical indicators suggest positive momentum, yet caution is advised due to potential overvaluation and operational risks.

Positive Factors

Corporate Clinic Transition

The company is making positive strides in its corporate clinic transition as it continues to improve its business fundamentals.

Digital Strategy

The Joint is advancing its digital strategy, with increased online scheduling capabilities and the launch of its first mobile app expected, which could improve the patient experience and drive repeat visits.

Financial Health

JYNT had $25.1M in cash and no debt, and it is expected to generate positive cash flows from continuing operations.

Negative Factors

Execution Risks

Execution risks remain, as the company has yet to finalize the sale of a significant number of corporate-owned clinics.

Guidance and Demand

The company lowered 2024 sales and clinic opening guidance, reflecting management's expectation of continued softness in patient demand through 4Q24.

Industry Headwinds

Despite reporting a slight y/y improvement in 3Q24 revenue and announcing signs of a rebound in patient demand back in July, industry headwinds persisted throughout 3Q24 and are likely to continue.

Joint Business Overview & Revenue Model

Company Description

Joint (JYNT), known as The Joint Chiropractic, is a healthcare services company focused on providing chiropractic care through a network of clinics across the United States. The company operates in the health and wellness sector, offering a range of services aimed at improving mobility and reducing pain through routine and affordable chiropractic adjustments. The Joint Chiropractic distinguishes itself by providing convenient, no-appointment, and membership-based services, allowing patients to access care at their convenience.

How the Company Makes Money

The Joint Chiropractic makes money primarily through the operation of its company-owned clinics and franchise-owned clinics. Revenue is generated from the sale of chiropractic services and membership plans that offer patients benefits such as discounted rates and unlimited visits. The company charges franchise fees and collects royalties from franchisees, which contribute to its revenue streams. Additionally, The Joint Chiropractic's business model focuses on high patient volume and low-cost service delivery, enabling profitability through economies of scale. Strategic partnerships with franchisees and a focus on expanding its network further enhance its revenue-generating capabilities.

Joint Financial Statement Overview

Summary

Joint shows a positive revenue growth trend and strong operating cash flow, but faces challenges with profitability and debt management. Improvements in cost control and leveraging its equity position could enhance overall financial stability.

Income Statement

The company's revenue has shown growth over the years, with a notable increase from 2022 to 2023. However, the company is currently operating at a net loss, with negative net profit and EBIT margins, indicating potential issues with cost management or pricing strategies.

Balance Sheet

The debt-to-equity ratio has improved, showing strong equity backing, but the company still carries significant debt, which could pose risks. Additionally, the return on equity is negative due to the net loss, impacting overall financial health.

Cash Flow

The company has demonstrated strong operating cash flow, with positive free cash flow growth. However, the high net income loss affects the free cash flow to net income ratio, suggesting potential issues with profitability conversion.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
51.90M	117.70M	101.91M	81.19M	58.68M
	Gross Profit
40.38M	107.15M	92.08M	72.68M	52.18M
	EBIT
-1.76M	-2.07M	2.90M	6.01M	5.49M
	EBITDA
2.98M	9.14M	7.89M	12.16M	8.18M
	Net Income Common Stockholders
-8.53M	-9.75M	1.18M	7.57M	13.17M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
25.05M	18.15M	9.75M	19.53M	20.55M
	Total Assets
80.42M	87.15M	91.94M	84.04M	65.73M
	Total Debt
448.29K	16.73M	26.06M	22.45M	18.48M
	Net Debt
-24.60M	-1.42M	16.31M	2.92M	-2.07M
	Total Liabilities
62.48M	62.38M	59.54M	54.48M	44.98M
	Stockholders Equity
17.92M	24.75M	32.37M	29.54M	20.75M
Cash Flow		Free Cash Flow
8.23M	9.68M	2.31M	6.85M	6.99M
	Operating Cash Flow
9.42M	14.68M	11.08M	15.23M	11.18M
	Investing Cash Flow
-631.55K	-6.19M	-20.78M	-14.14M	-4.60M
	Financing Cash Flow
-2.00M	174.12K	328.61K	-2.00M	5.60M

Joint Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JYNT, the sentiment is Negative. The current price of 10.4 is below the 20-day moving average (MA) of 11.71, below the 50-day MA of 11.43, and below the 200-day MA of 11.59, indicating a bearish trend. The MACD of -0.34 indicates Positive momentum. The RSI at 36.12 is Neutral, neither overbought nor oversold. The STOCH value of 18.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JYNT.

Joint Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELMD	79 Outperform	$192.79M	29.84	16.11%	―	15.35%	71.35%
UTMD	72 Outperform	$174.07M	13.39	11.29%	2.28%	-18.56%	-13.66%
JYNT	64 Neutral	$159.35M	―	-22.63%	―	-11.10%	13.57%
BTMD	58 Neutral	$199.69M	20.27	-7.92%	―	6.38%	―
ARAY	52 Neutral	$150.13M	―	-9.15%	―	1.26%	70.30%
Sector *	48 Neutral	$6.46B	1.17	-48.25%	2.67%	19.50%	0.61%
SGMO	35 Underperform	$161.45M	―	-187.83%	―	-67.20%	64.66%

Joint Corporate Events

Joint Corp. Amends Executive Incentive Plan for 2025

On March 10, 2025, The Joint Corp.’s Board of Directors approved an amendment to the Executive Short-Term Incentive Plan, linking executive bonuses to adjusted EBITDA performance. The company reported a 14% revenue increase for Q4 2024, with net income of $986,000 from continuing operations, marking a significant improvement from a $10.2 million loss in Q4 2023. The Joint Corp. plans to focus on refranchising and enhancing digital marketing to drive growth in 2025, with expectations of increased clinic openings and sales in 2026.