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Trubridge, Inc. (TBRG)
:TBRG
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TruBridge
(NASDAQ:TBRG)
Rating:62Neutral
Price Target:
$24.00
▲(4.53%Upside)
TruBridge (TBRG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$344.94M
Dividend YieldN/A
Average Volume (3M)182.50K
Price to Earnings (P/E)―
Beta (1Y)0.54
Revenue Growth3.15%
EPS Growth61.71%
CountryUS
Employees3,200
SectorHealthcare
Sector Strength39
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)0.36
Shares Outstanding15,023,378
10 Day Avg. Volume296,053
30 Day Avg. Volume182,495
Financial Highlights & Ratios
PEG Ratio-1.72
Price to Book (P/B)1.69
Price to Sales (P/S)0.00
P/FCF Ratio30.04
Enterprise Value/Market Cap1.54
Enterprise Value/Revenue0.39
Enterprise Value/Gross Profit3.11
Enterprise Value/Ebitda13.44
Forecast
1Y Price Target
$27.00Price Target Upside17.60% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
TruBridge Business Overview & Revenue Model
Company DescriptionTruBridge (TBRG) is a healthcare information technology company that provides comprehensive solutions to healthcare organizations. The company specializes in offering revenue cycle management, consulting services, and managed IT services to enhance operational efficiency and financial performance. With a focus on rural and community hospitals, TruBridge aims to optimize billing processes, enhance cash flow, and ensure compliance with industry regulations.
How the Company Makes MoneyTruBridge generates revenue primarily through its suite of services designed to improve the financial and operational performance of healthcare organizations. The company's key revenue streams include revenue cycle management services, which involve optimizing billing, collections, and claims processing. Additionally, TruBridge offers consulting services that provide strategic guidance on improving operational efficiencies, and managed IT services that help healthcare providers maintain and secure their IT infrastructure. Significant partnerships with healthcare providers and facilities enhance its market reach and contribute to its earnings by facilitating the adoption of its solutions across different organizations.
TruBridge Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: -9.96%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant improvements in financial performance, including doubled EBITDA, increased cash flow, and reduced leverage. Revenue and bookings showed robust growth, with successful offshore transitions contributing to higher margins. Despite these positives, challenges remain due to external uncertainties in health care funding and tariffs, which could affect customer decision-making. Overall, the sentiment leans positive due to strong financial results and operational progress, with caution advised regarding external factors.Q1-2025 Updates
Positive Updates
Significant Improvement in Financial Metrics
Adjusted EBITDA nearly doubled to $18.2 million from $10 million last year. Cash flow from operations increased by over $7 million, and the net leverage ratio decreased from 4.4x to 2.4x.
Revenue and Bookings Growth
Revenue reached $87 million, marking a 3.7% year-over-year increase. Q1 bookings totaled $22 million, with a 50% sequential increase in Financial Health bookings and a 60% increase in Patient Care bookings.
Successful Transition to Offshore Operations
Approximately 30% of CBO clients are now supported offshore, contributing to improved gross margins and supporting a target of 60% by the end of 2025.
High Customer Retention Rates
Patient Care customer retention was 98%, excluding Centriq, compared to mid-90s in the previous year. Financial Health renewed 9 out of 11 clients up for renewal.
Improved Gross Margins
Gross margins increased by 430 basis points to 54.7% year-over-year, with Financial Health gross margins rising by 700 basis points.
Negative Updates
Challenges in Health Care Funding and Tariff Uncertainty
Ongoing uncertainty related to future health care funding and potential tariff impacts could cause customers to slow down decision-making processes.
Bookings with Limited Revenue Impact
Approximately 25% of Q1 bookings are expected to have little to no revenue impact in 2025 due to elongated go-live timing driven by specific customer situations.
Sales Cycle Caution Due to External Factors
Customers are cautious due to potential changes to Medicare expansion and reimbursement, which could impact decision-making and timing of purchases.
Company Guidance
During the TruBridge first quarter 2025 earnings call, the company reported significant improvements across various financial metrics. Adjusted EBITDA nearly doubled to $18.2 million, compared to $10 million in the same quarter last year, while cash flow from operations increased by over $7 million, improving from negative $2 million previously. The net leverage ratio decreased by two turns to 2.4x. Revenue reached $87 million, hitting the high end of guidance, with adjusted EBITDA exceeding expectations. Bookings totaled $22 million, with $13 million attributed to Financial Health and $9 million to Patient Care, marking a sequential increase of 50% and 60%, respectively. The company plans to transition to reporting bookings on an annual contract value (ACV) basis, with Q1 2025 ACV bookings reported at $17.3 million. Despite potential uncertainties related to healthcare funding and tariffs, TruBridge remains confident in the demand for its solutions, focusing on improving collections and operational efficiencies. The company also highlighted ongoing efforts to increase automation, with a target of having 60% of its CBO clients supported offshore by the end of 2025.TruBridge Financial Statement Overview
Summary
TruBridge exhibits strong revenue growth and a robust balance sheet with low leverage, indicating financial stability. However, persistent net losses highlight profitability challenges. Cash flow remains robust, supporting operational needs, but improving profitability is crucial for financial health.Income Statement
TruBridge's TTM (Trailing-Twelve-Months) revenue shows modest growth, but net income remains negative, impacting net profit margins adversely. Gross profit margin is healthy at approximately 49.3%, indicating efficient cost management. However, negative net profit margins and fluctuating EBIT margins suggest challenges in profitability and operational efficiency.65
Positive
Balance Sheet
The company's balance sheet reflects a strong equity position with an equity ratio of 43.3%. The debt-to-equity ratio is low at approximately 0.03, indicating low leverage and reduced financial risk. Despite this, a decline in total assets over time suggests potential concerns in asset management or reinvestment strategies.75
Positive
Cash Flow
TruBridge's TTM (Trailing-Twelve-Months) operating cash flow is robust, leading to a favorable operating cash flow to net income ratio. Free cash flow has shown growth, but the free cash flow to net income ratio highlights issues due to negative net income figures. Overall, cash flow management appears strong despite profitability challenges.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 346.61M | 342.65M | 339.44M | 326.65M | 280.63M | 264.49M |
| Gross Profit | 170.82M | 174.12M | 163.57M | 160.11M | 144.85M | 136.25M |
| EBITDA | 33.38M | 34.94M | -15.39M | 47.73M | 43.11M | 35.56M |
| Net Income | -17.25M | -20.44M | -45.79M | 15.87M | 18.43M | 14.25M |
Balance Sheet | ||||||
| Total Assets | 388.84M | 394.43M | 434.42M | 430.96M | 383.35M | 326.27M |
| Cash, Cash Equivalents and Short-Term Investments | 10.12M | 12.32M | 3.85M | 6.95M | 11.43M | 12.67M |
| Total Debt | 5.04M | 174.81M | 203.29M | 147.24M | 106.46M | 83.43M |
| Total Liabilities | 220.33M | 225.74M | 247.80M | 199.25M | 160.78M | 126.27M |
| Stockholders Equity | 168.51M | 168.69M | 186.62M | 231.71M | 222.57M | 200.00M |
Cash Flow | ||||||
| Free Cash Flow | 25.49M | 13.04M | -22.35M | 13.01M | 37.46M | 42.48M |
| Operating Cash Flow | 39.93M | 32.13M | 1.06M | 32.38M | 47.74M | 49.14M |
| Investing Cash Flow | -14.51M | 4.12M | -60.11M | -62.73M | -69.92M | -6.66M |
| Financing Cash Flow | -19.41M | -27.74M | 55.95M | 25.88M | 20.93M | -37.16M |
TruBridge Technical Analysis
Negative
22.96
Price Trends
24.13
Negative
25.66
Negative
21.52
Positive
Market Momentum
-0.33
Negative
44.39
Neutral
36.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TBRG, the sentiment is Negative. The current price of 22.96 is below the 20-day moving average (MA) of 23.22, below the 50-day MA of 24.13, and above the 200-day MA of 21.52, indicating a neutral trend. The MACD of -0.33 indicates Negative momentum. The RSI at 44.39 is Neutral, neither overbought nor oversold. The STOCH value of 36.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TBRG.
TruBridge Risk Analysis
TruBridge disclosed 44 risk factors in its most recent earnings report. TruBridge reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
TruBridge Peers Comparison
Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $275.88M | 23.40 | 9.79% | ― | 19.97% | 17.21% | |
73 Outperform | $580.91M | 30.59 | -1.20% | ― | 38.43% | 86.19% | |
70 Outperform | $235.51M | 15.49 | 8.12% | ― | 5.96% | -43.83% | |
62 Neutral | $344.94M | ― | -10.98% | ― | 3.15% | 61.71% | |
59 Neutral | $610.23M | ― | -86.36% | ― | -3.04% | -152.59% | |
52 Neutral | $7.59B | 0.30 | -61.86% | 2.27% | 16.72% | 1.10% | |
47 Neutral | $351.42M | ― | -938.38% | ― | 38.82% | -645.78% |
* Healthcare Sector Average
Performance Comparison
TBRG
TruBridge
22.06
11.40
106.94%
RNAC
Cartesian Therapeutics
13.32
-4.60
-25.67%
TCMD
Tactile Systems Technology
9.96
-2.48
-19.94%
VMD
Viemed Healthcare
6.74
-0.09
-1.32%
CSTL
Castle Biosciences
19.66
0.81
4.30%
DH
Definitive Healthcare Corp
3.92
-1.58
-28.73%
TruBridge Corporate Events
Executive/Board ChangesShareholder Meetings
TruBridge Announces Governance Changes at Annual Meeting
Neutral
May 8, 2025
At the 2025 Annual Meeting held on May 8, 2025, TruBridge, Inc. announced significant corporate governance changes and approvals. The company’s stockholders approved the declassification of the Board of Directors, which will take effect starting with the 2026 Annual Meeting. Additionally, the Second Amended and Restated 2019 Incentive Plan was approved to increase the number of shares available for issuance. Other key decisions included the re-election of Class II directors, an advisory vote on executive compensation, and the ratification of Grant Thornton LLP as the independent registered public accountants for 2025.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.