Sunlink Health Systems (SSY) AI Stock Analysis

• Market Cap: $6.55M
• Dividend Yield: N/A
• Average Volume (3M): 38.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• Revenue Growth: -21.10%
• EPS Growth: 30.67%
• Country: US
• Employees: 1,376
• Sector: Healthcare
• Sector Strength: 74
• Industry: Medical - Pharmaceuticals
• EPS (TTM): -0.65
• Shares Outstanding: 7,040,603
• 10 Day Avg. Volume: 18,843
• 30 Day Avg. Volume: 38,183
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.32
• Price to Cash Flow (P/CF): -2.10
• P/FCF Ratio: 0.00
• 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

Sunlink Health Systems faces notable financial challenges, particularly with declining revenues and negative cash flows. However, a strong equity position and a positive net income in the recent TTM period offer some optimism. The technical indicators show a neutral to slightly positive trend, but valuation concerns persist due to the negative P/E ratio and lack of dividends. The overall score reflects these mixed factors, highlighting the need for operational improvements and revenue stabilization.

Sunlink Health Systems Business Overview & Revenue Model

Company Description

SunLink Health Systems, Inc., through its subsidiaries, provides healthcare products and services in the southeastern United States. It operates through two segments, Healthcare Services and Pharmacy. The Healthcare Services segment owns and operates an 84-bed community hospital, which includes an 18-bed geriatric psychiatry unit; and a 66-bed extended care and rehabilitation center. This segment also provides information technology services; and owns unimproved lands. The Pharmacy segment offers institutional and non-institutional pharmacy services; and durable medical equipment products and services, including the sale and rental of products for institutional clients or to patients in institutional settings and patient-administered home care, as well as retails pharmacy products and services. SunLink Health Systems, Inc. was incorporated in 1959 and is based in Atlanta, Georgia.

How the Company Makes Money

SunLink Health Systems makes money through its hospital operations and the provision of various healthcare services. The company's primary revenue streams include patient service revenue generated from its hospitals, which includes inpatient services, outpatient services, and ancillary services such as laboratory and radiology. Additionally, SunLink may earn revenue from leasing medical office buildings and providing business support services to healthcare providers. The company's earnings are influenced by factors such as patient volume, service rates, and reimbursement rates from private insurers and government programs like Medicare and Medicaid.

Sunlink Health Systems Financial Statement Overview

Summary

Sunlink Health Systems faces substantial financial challenges, particularly with declining revenues and negative cash flows. While the company's equity position is strong, indicating low reliance on debt, operational efficiency is a concern. The positive turn in net income during the TTM period is a positive sign, but ongoing cash flow issues could pose risks. The company needs to focus on improving its operational cash flow and reversing revenue declines to strengthen its financial standing.

Income Statement

Sunlink Health Systems shows a declining revenue trend with a significant drop in total revenue from previous years. The gross profit margin stood at about 34.1% for TTM, indicating some efficiency in managing production costs. However, the company struggles with profitability, as evidenced by a negative EBIT margin of -12.1% and EBITDA margin of -7.5%, though net income has turned positive in the TTM period with a net profit margin of about 3.2%. The revenue growth rate is negative, indicating a contraction in revenue.

Balance Sheet

The balance sheet shows a strong equity position with an equity ratio of 78.8% for TTM, suggesting low reliance on debt financing. The debt-to-equity ratio is low at 0.03, indicating minimal leverage. Return on equity is modest at 7.1%, reflecting positive but limited efficiency in generating returns from shareholder equity. The company has maintained a solid cash position, which provides a cushion against operational risks.

Cash Flow

The cash flow statement reveals significant challenges, with negative operating cash flow suggesting difficulties in generating cash from core operations. The free cash flow is also negative, reflecting issues in sustaining positive cash flow after capital expenditures. The free cash flow to net income ratio is negative, indicating that net income is not translating into free cash flow. Despite positive investing cash flow, the overall picture remains weak due to operational cash flow deficiencies.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
31.23M	32.44M	47.95M	41.34M	40.69M	47.81M
	Gross Profit
10.65M	12.90M	23.90M	20.11M	21.61M	24.65M
	EBIT
-3.73M	-2.41M	-2.32M	-5.34M	1.87M	-275.00K
	EBITDA
-2.34M	-453.00K	-1.66M	-3.80M	3.23M	1.12M
	Net Income Common Stockholders
1.00M	-1.53M	-1.79M	-1.72M	6.89M	-586.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.02M	7.17M	4.49M	6.79M	9.96M	11.18M
	Total Assets
17.87M	20.61M	23.27M	27.94M	31.56M	27.97M
	Total Debt
399.00K	528.00K	1.08M	1.26M	4.34M	4.33M
	Net Debt
-7.62M	-6.64M	-3.40M	-5.53M	-5.62M	-6.85M
	Total Liabilities
3.79M	4.64M	5.85M	8.82M	10.75M	14.23M
	Stockholders Equity
14.08M	15.97M	17.42M	19.12M	20.81M	13.74M
Cash Flow		Free Cash Flow
-4.35M	-4.45M	-2.54M	-3.19M	-1.23M	2.78M
	Operating Cash Flow
-3.53M	-2.98M	-540.00K	-4.00K	1.36M	3.97M
	Investing Cash Flow
9.49M	5.67M	-1.78M	-3.13M	-2.55M	-626.00K
	Financing Cash Flow
0.00	-8.00K	8.00K	-36.00K	-35.00K	99.00K

Sunlink Health Systems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.94
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSY, the sentiment is Positive. The current price of 0.94 is below the 20-day moving average (MA) of 0.98, below the 50-day MA of 0.96, and above the 200-day MA of 0.86, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 50.59 is Neutral, neither overbought nor oversold. The STOCH value of 60.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SSY.

Sunlink Health Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SSY	51 Neutral	$6.55M	―	-22.06%	―	-21.10%	30.67%
BFRI	48 Neutral	$6.61M	―	-384.98%	―	9.54%	74.28%
Sector *	48 Neutral	$6.36B	1.28	-45.04%	2.64%	19.24%	1.69%
SINT	42 Neutral	$5.23M	―	-174.07%	―	9.90%	94.56%
TRIB	35 Underperform	$6.42M	―	77.20%	―	-3.76%	39.52%
PPBT	34 Underperform	$6.80M	―	-21.59%	―	―	71.57%