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TruBridge (TBRG)
NASDAQ:TBRG
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TruBridge
(NASDAQ:TBRG)
Rating:65Neutral
Price Target:
$27.00
▲(13.35%Upside)
TruBridge (TBRG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$357.86M
Dividend YieldN/A
Average Volume (3M)146.37K
Price to Earnings (P/E)―
Beta (1Y)0.51
Revenue Growth3.15%
EPS Growth61.71%
CountryUS
Employees3,200
SectorHealthcare
Sector Strength42
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)0.36
Shares Outstanding15,023,378
10 Day Avg. Volume135,649
30 Day Avg. Volume146,371
Financial Highlights & Ratios
PEG Ratio-0.18
Price to Book (P/B)2.11
Price to Sales (P/S)0.00
P/FCF Ratio28.45
Enterprise Value/Market Cap1.49
Enterprise Value/Revenue0.39
Enterprise Value/Gross Profit3.37
Enterprise Value/Ebitda-57.11
Forecast
1Y Price Target
$28.67Price Target Upside20.36% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
TruBridge Business Overview & Revenue Model
Company DescriptionTruBridge (TBRG) is a healthcare software and services company that provides innovative solutions to improve the financial and operational performance of healthcare organizations. The company focuses primarily on serving community hospitals and healthcare systems. Its core products and services include revenue cycle management, consulting services, and managed IT services, all designed to streamline healthcare operations and enhance financial outcomes.
How the Company Makes MoneyTruBridge makes money through a diverse revenue model centered on providing essential services to healthcare organizations. Key revenue streams include subscription fees for its software solutions, service fees for revenue cycle management, and consulting fees for strategic advisory services. Additionally, TruBridge generates income from managed IT services, which help healthcare providers optimize their technology infrastructure. Significant partnerships with healthcare providers and technology partners enable TruBridge to expand its service offerings and maintain a steady flow of clients, contributing to its overall earnings.
TruBridge Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: -6.59%|
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 faces profitability and growth challenges, as evidenced by negative net income and stagnant revenue. The balance sheet shows moderate stability, but the decline in equity and assets is concerning. Cash flow management reflects resilience, yet inefficiencies persist.Income Statement
The income statement of TruBridge shows a concerning trend with a significant net loss in the most recent year, driven by negative net income and EBIT margins. The gross profit margin has remained fairly stable, but revenue growth has stagnated. The company needs to focus on improving operational efficiency and returning to profitability.45
Neutral
Balance Sheet
TruBridge's balance sheet reflects a moderate level of stability with a reasonable debt-to-equity ratio. However, the decline in stockholders' equity and total assets over the years is a concern. The equity ratio indicates moderate leverage, but the company should address the decreasing equity trend to enhance financial strength.60
Neutral
Cash Flow
The cash flow statement indicates some resilience with positive free cash flow in the latest period. However, the operating cash flow to net income ratio suggests inefficiencies, as operating cash flow significantly surpasses net income. The company should focus on improving cash flow consistency and profitability alignment.55
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 342.65M | 339.44M | 326.65M | 280.63M | 264.49M | Gross Profit |
| 174.12M | 163.57M | 160.11M | 144.85M | 136.25M | EBIT |
| 6.63M | -42.60M | 22.78M | 24.71M | 21.05M | EBITDA |
| 34.94M | -15.39M | 47.73M | 43.11M | 35.56M | Net Income Common Stockholders |
| -23.08K | -45.79M | 15.87M | 18.43M | 14.25M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 12.32M | 3.85M | 6.95M | 11.43M | 12.67M | Total Assets |
| 394.43M | 434.42M | 430.96M | 383.35M | 326.27M | Total Debt |
| 174.81M | 203.29M | 147.24M | 106.46M | 83.43M | Net Debt |
| 162.49M | 199.44M | 140.29M | 95.03M | 70.76M | Total Liabilities |
| 225.74M | 247.80M | 199.25M | 160.78M | 126.27M | Stockholders Equity |
| 168.69M | 186.62M | 231.71M | 222.57M | 200.00M |
| Cash Flow | Free Cash Flow | |||
| 13.04M | -22.35M | 13.01M | 37.46M | 42.48M | Operating Cash Flow |
| 32.13M | 1.06M | 32.38M | 47.74M | 49.14M | Investing Cash Flow |
| 4.12M | -60.11M | -62.73M | -69.92M | -6.66M | Financing Cash Flow |
| -27.74M | 55.95M | 25.88M | 20.93M | -37.16M |
TruBridge Technical Analysis
Neutral
23.82
Price Trends
25.08
Negative
25.87
Negative
20.37
Positive
Market Momentum
-0.48
Positive
42.03
Neutral
27.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TBRG, the sentiment is Neutral. The current price of 23.82 is below the 20-day moving average (MA) of 24.29, below the 50-day MA of 25.08, and above the 200-day MA of 20.37, indicating a neutral trend. The MACD of -0.48 indicates Positive momentum. The RSI at 42.03 is Neutral, neither overbought nor oversold. The STOCH value of 27.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 2 New Risks
1.
Actions of activist stockholders against us could be disruptive and costly. The possibility that activist stockholders may wage proxy contests or seek representation on our Board could cause uncertainty about the strategic direction of our business. Q4, 2024
2.
We do not anticipate paying any dividends on our common stock. Q4, 2024
TruBridge Peers Comparison
Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $265.60M | 22.53 | 9.79% | ― | 19.97% | 17.21% | |
65 Neutral | $357.86M | ― | -10.98% | ― | 3.15% | 61.71% | |
65 Neutral | $508.15M | 30.59 | -1.20% | ― | 38.43% | 86.19% | |
60 Neutral | $233.41M | 15.16 | 8.12% | ― | 5.96% | -43.83% | |
57 Neutral | $547.31M | ― | -86.36% | ― | -3.04% | -152.59% | |
54 Neutral | $5.31B | 3.28 | -45.10% | 2.80% | 16.76% | 0.02% | |
47 Neutral | $286.41M | ― | -938.38% | ― | 38.82% | -645.78% |
* Healthcare Sector Average
Performance Comparison
TBRG
TruBridge
23.82
14.06
144.06%
RNAC
Cartesian Therapeutics
11.04
-21.35
-65.92%
TCMD
Tactile Systems Technology
10.04
-1.99
-16.54%
VMD
Viemed Healthcare
6.72
-0.40
-5.62%
CSTL
Castle Biosciences
17.60
-5.60
-24.14%
DH
Definitive Healthcare Corp
3.74
-2.11
-36.07%
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
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.