P3 Health Partners (PIII) AI Stock Analysis

• Market Cap: $43.34M
• Dividend Yield: N/A
• Average Volume (3M): 5.12K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.11
• Revenue Growth: 9.79%
• EPS Growth: -47.01%
• Country: US
• Employees: 360
• Sector: Healthcare
• Sector Strength: 49
• Industry: Medical - Care Facilities
• EPS (TTM): -6.28
• Shares Outstanding: 3,268,093
• 10 Day Avg. Volume: 5,465
• 30 Day Avg. Volume: 5,123
• PEG Ratio: N/A
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.19
• Enterprise Value/Market Cap: 1.38
• Enterprise Value/Revenue: 0.01
• Enterprise Value/Gross Profit: -2.72
• Enterprise Value/Ebitda: -0.10
• 1Y Price Target: $14.00
• Price Target Upside: 132.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 43 Neutral
• Price Target: $6.50 ▲(7.79%Upside)

P3 Health Partners faces financial challenges with negative profitability and high leverage, reflected in its low financial performance score. While technical indicators suggest bearish sentiment, corporate events and earnings call insights show potential for strategic improvements, mitigating some risks.

Positive Factors

Operational Improvements

PIII is ahead of schedule with respect to the previously announced ~$130M of adjusted EBITDA improvements.

Profit Outlook

Initiatives the management team is implementing, especially with its stronger focus on exiting unprofitable markets and reworking risk-based contracts, lead to a more favorable profit outlook and lower cash burn.

Risk Management

The approach to contract renegotiations and elimination of Part D risk mark continued positive developments for the company.

Negative Factors

Cash Position

There is worry about PIII's tight cash position and the company's persistent struggle to improve earnings.

Earnings Visibility

Visibility into utilization and costs is low, and PIII has missed consensus estimates for EBITDA in all of the last 7 quarters.

Medical Margin

One difficult payer had a material impact to earnings in 1Q:25, resulting in a significant decline in medical margin.

P3 Health Partners Business Overview & Revenue Model

Company Description

P3 Health Partners (PIII) is a healthcare provider that operates within the managed care sector. The company focuses on delivering value-based care, primarily through partnerships with healthcare providers to offer coordinated and patient-centered care services. P3 Health Partners aims to improve patient outcomes and reduce healthcare costs by emphasizing preventive care and chronic disease management.

How the Company Makes Money

P3 Health Partners makes money through a value-based care model, where it receives payments from health plans and insurance providers for managing the healthcare needs of their members. This model incentivizes the company to focus on improving patient health outcomes and reducing costs. Revenue streams include capitation payments, where P3 receives a fixed amount per patient enrolled under their care, and performance-based incentives tied to the quality and efficiency of the healthcare services provided. Significant partnerships with healthcare providers and insurance companies contribute to its earnings, aligning financial success with patient health outcomes.

P3 Health Partners Financial Statement Overview

Summary

P3 Health Partners shows revenue growth but struggles with profitability and financial stability. High leverage and negative margins are significant risks, necessitating improvements in operational efficiency and debt reduction.

Income Statement

P3 Health Partners has shown a notable revenue growth from the previous year, with a 18.48% increase in 2024. Despite this, the company struggles with profitability, evidenced by negative gross profit margins and a significant net loss. EBIT and EBITDA margins are also negative, indicating challenges in covering operational costs and interest expenses.

Balance Sheet

The balance sheet reflects high leverage with a debt-to-equity ratio standing at 1.01, indicating potential risk in financial stability. The equity ratio is low at 9.69%, suggesting limited buffer against liabilities. Return on equity is highly negative, reflecting the net losses impacting shareholder value.

Cash Flow

The cash flow statement reveals negative free cash flow, indicating challenges in generating cash from operations. The operating cash flow to net income ratio is negative, highlighting inefficiencies in converting profits into cash. However, there's a positive cash inflow from financing activities which may provide temporary relief.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.49B	1.50B	1.27B	1.05B	491.06B	485.54M
Gross Profit	-21.97M	-144.97M	31.64M	-95.01M	490.40B	243.70K
EBITDA	-206.87M	-197.76M	-81.07M	-1.46B	-184.61M	-28.08M
Net Income	-159.25M	-135.85M	-57.77M	-270.13M	-10.08M	-31.41M
Balance Sheet
Total Assets	855.92M	783.42M	860.97M	876.57M	2.36B	99.90M
Cash, Cash Equivalents and Short-Term Investments	32.30M	38.82M	36.32M	17.54M	140.48M	36.26M
Total Debt	132.51M	166.16M	121.94M	105.94M	89.92M	49.11M
Total Liabilities	470.49M	633.89M	427.31M	353.91M	299.94M	145.96M
Stockholders Equity	146.60M	75.94M	142.13M	5.85M	273.55M	-27.87M
Cash Flow
Free Cash Flow	-123.56M	-110.13M	-77.86M	-128.25K	-69.88M	-27.52M
Operating Cash Flow	-123.56M	-110.13M	-76.03M	-126.02K	-66.47M	-24.60M
Investing Cash Flow	14.53M	14.53M	-1.83M	-7.73K	-56.07M	-3.17M
Financing Cash Flow	118.03M	98.77M	100.33M	11.38K	223.47M	34.76M

P3 Health Partners Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.03
• 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 PIII, the sentiment is Negative. The current price of 6.03 is below the 20-day moving average (MA) of 6.56, below the 50-day MA of 7.78, and below the 200-day MA of 11.94, indicating a bearish trend. The MACD of -0.46 indicates Negative momentum. The RSI at 30.50 is Neutral, neither overbought nor oversold. The STOCH value of 11.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PIII.

P3 Health Partners Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AIRS	55 Neutral	$302.71M	―	-21.30%	―	-12.96%	-1199.26%
INNV	53 Neutral	$536.00M	―	-12.03%	―	12.19%	-1.59%
Sector *	51 Neutral	$7.39B	0.31	-61.07%	2.34%	17.46%	1.71%
CYH	51 Neutral	$475.64M	―	39.18%	―	1.05%	-288.07%
MODV	46 Neutral	$49.38M	―	-951.52%	―	-0.70%	-2.38%
TOI	46 Neutral	$210.48M	―	-227.77%	―	17.64%	13.86%
PIII	43 Neutral	$43.34M	―	-131.17%	―	9.79%	-47.01%

P3 Health Partners Corporate Events

P3 Health Partners’ Shareholders Approve Key Proposals

On June 4, 2025, P3 Health Partners Inc. held its 2025 Annual Meeting of Stockholders, where shareholders voted on four proposals. The election of three Class I directors, the ratification of BDO USA, P.C. as the independent auditor, the approval of executive compensation, and the issuance of additional shares were all approved, indicating strong shareholder support for the company’s strategic decisions.

The most recent analyst rating on (PIII) stock is a Buy with a $225.00 price target. To see the full list of analyst forecasts on P3 Health Partners stock, see the PIII Stock Forecast page.

P3 Health Partners Secures $70M Financing Deal

On May 29, 2025, P3 Health Group, a subsidiary of P3 Health Partners Inc., entered into a financing transaction with VBC Growth SPV 5, LLC. This transaction involves an unsecured promissory note and warrants to purchase shares of the company’s Class A Common Stock. The promissory note, approved by independent directors, allows P3 LLC to access up to $70 million in funding, which will be used to support ongoing working capital needs. The agreement includes specific terms for interest payments and prepayment options, with a maturity date set for August 13, 2028. Additionally, a warrant agreement was established, allowing VBC 5 to purchase shares contingent upon stockholder approval, with the warrants expiring in 2032. This financing arrangement is expected to bolster P3 Health Partners’ financial position and support its operational objectives.

The most recent analyst rating on (PIII) stock is a Buy with a $225.00 price target. To see the full list of analyst forecasts on P3 Health Partners stock, see the PIII Stock Forecast page.