Sunlink Health Systems (SSY) AI Stock Analysis

• Market Cap: $6.20M
• Dividend Yield: N/A
• Average Volume (3M): 41.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.32
• Revenue Growth: -12.45%
• EPS Growth: 46.73%
• Country: US
• Employees: 1,376
• Sector: Healthcare
• Sector Strength: 42
• Industry: Medical - Pharmaceuticals
• EPS (TTM): -0.10
• Shares Outstanding: 7,040,603
• 10 Day Avg. Volume: 73,946
• 30 Day Avg. Volume: 41,899
• PEG Ratio: 0.03
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.48
• Enterprise Value/Market Cap: -0.19
• Enterprise Value/Revenue: >-0.01
• Enterprise Value/Gross Profit: -0.14
• Enterprise Value/Ebitda: 0.18
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 48 Neutral
• Price Target: $1.00 ▲(13.64%Upside)

Sunlink Health Systems is currently facing significant financial challenges, primarily due to negative cash flows and declining revenues despite a strong equity position. The technical analysis reveals a neutral market position with minimal momentum. Valuation concerns, particularly a negative P/E ratio, further impact the overall score. Investors should be cautious due to these financial and valuation issues.

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 generates revenue primarily through the operation of its healthcare facilities, which include community hospitals and clinics. The company earns income by providing a variety of medical services to patients, which are reimbursed by private insurance companies, government healthcare programs like Medicare and Medicaid, and direct payments from patients. Key revenue streams include inpatient and outpatient care services, diagnostic imaging, surgical services, emergency care, and other ancillary services such as laboratory and pharmacy. Partnerships with local healthcare providers and insurance companies further support the company's revenue generation by integrating services and facilitating patient referrals.

Sunlink Health Systems Financial Statement Overview

Summary

Sunlink Health Systems faces substantial financial challenges with declining revenues and negative cash flows. Despite a strong equity position and a positive turn in net income, the company struggles with operational efficiency and cash flow generation. The focus should be on improving operational cash flow and reversing revenue declines.

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
8.38M	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
1.21M	7.17M	4.49M	6.79M	9.96M	11.18M
	Total Assets
16.14M	20.61M	23.27M	27.94M	31.56M	27.97M
	Total Debt
605.00K	528.00K	1.08M	1.26M	4.34M	4.33M
	Net Debt
-606.00K	-6.64M	-3.40M	-5.53M	-5.62M	-6.85M
	Total Liabilities
4.54M	4.64M	5.85M	8.82M	10.75M	14.23M
	Stockholders Equity
11.61M	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: Negative
• Last Price: 0.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 0.88 is above the 20-day moving average (MA) of 0.87, below the 50-day MA of 0.90, and above the 200-day MA of 0.88, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 44.90 is Neutral, neither overbought nor oversold. The STOCH value of 45.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SSY.

Sunlink Health Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	54 Neutral	$5.31B	3.29	-45.39%	2.79%	16.77%	-0.07%
SSY	48 Neutral	$6.20M	―	-22.34%	―	-12.45%	46.73%
BFRI	45 Neutral	$5.67M	―	-384.98%	―	14.27%	87.31%
SINT	42 Neutral	$7.00M	―	-155.20%	―	9.90%	94.56%
TRIB	35 Underperform	$12.09M	―	77.20%	―	-3.76%	39.52%
PPBT	35 Underperform	$7.16M	―	-12.35%	―	―	71.57%
ALZN		$2.98M	―	-1092.96%	―	―	―