Oncology Institute (TOI) AI Stock Analysis

• Market Cap: $272.98M
• Dividend Yield: N/A
• Average Volume (3M): 2.13M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.49
• Revenue Growth: 17.64%
• EPS Growth: 13.86%
• Country: US
• Employees: 825
• Sector: Healthcare
• Sector Strength: 44
• Industry: Medical - Care Facilities
• EPS (TTM): -0.21
• Shares Outstanding: 91,913,734
• 10 Day Avg. Volume: 2,025,544
• 30 Day Avg. Volume: 2,134,456
• PEG Ratio: -0.04
• Price to Book (P/B): 48.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -15.41
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: 0.23
• Enterprise Value/Gross Profit: 6.03
• Enterprise Value/Ebitda: -1.65
• 1Y Price Target: $6.50
• Price Target Upside: 78.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 54 Neutral
• Price Target: $3.00 ▼(-17.81%Downside)

The Oncology Institute's stock score is driven largely by financial struggles, including profitability and cash flow issues. However, strong technical indicators and positive earnings call insights suggest potential for future improvement. Valuation metrics are currently unattractive due to negative earnings.

Positive Factors

Earnings Potential

TOI offers an attractive risk/reward profile given the operating margin improvement trajectory and path to cash flow positivity.

Financial Performance

The recent debt facility amendment has eliminated a key financial overhang, and management is guiding toward cash flow and adjusted EBITDA breakeven.

Negative Factors

Market Expansion Challenges

TOI continues to expand into new markets and increase the number of patients served, driven by macro trends and a differentiated business model.

Revenue Model Transition

TOI is working to transition some patients from a fee-for-service model to value-based-care, with ~46% of revenue in 2024 coming from VBC contracts.

Oncology Institute Business Overview & Revenue Model

Company Description

The Oncology Institute, Inc., an oncology company, provides medical oncology services in the United States. Its services include physician services, in-house infusion and dispensary, clinical trial services, radiation, outpatient stem cell transplants and transfusions programs, and patient support. The company also offers and manages clinical trial services, such as managing clinical trials, palliative care programs, and stem cell transplants services. It serves adult and senior cancer patients. The company operates 67 clinic locations. The Oncology Institute, Inc. was founded in 2007 and is based in Cerritos, California.

How the Company Makes Money

The Oncology Institute makes money primarily through providing medical services to cancer patients. Revenue streams include payments from healthcare insurance providers, government healthcare programs, and direct payments from patients for treatments and consultations. TOI may also receive funding through clinical research grants and partnerships with pharmaceutical companies for conducting clinical trials. Additionally, the institute could benefit from value-based care arrangements, where they may receive incentives for meeting specific patient care quality metrics. Significant partnerships with hospitals, research institutions, and insurance companies also contribute to its financial performance.

Oncology Institute Financial Statement Overview

Summary

The Oncology Institute faces significant financial challenges. Despite a small revenue increase, the company struggles with profitability, showcasing negative EBIT and net margins. The balance sheet is strained by high leverage, and cash flows remain negative, indicating poor financial health.

Income Statement

The Oncology Institute demonstrates a consistent increase in revenue over recent years, but it is struggling with profitability. The TTM data shows a slight revenue growth of 2.48% compared to the previous year, but the company reports a negative EBIT and net profit margin. This indicates an ongoing challenge in managing operational costs and achieving profitability.

Balance Sheet

The company's financial stability is challenged by a high debt-to-equity ratio due to its significant debt levels, which poses a risk in terms of leverage. The equity ratio has declined over time, reflecting decreased stockholders' equity and increased liabilities. Return on equity is negative, signaling inefficiencies in generating returns for shareholders.

Cash Flow

The Oncology Institute's cash flow situation is concerning, with negative free cash flow and operating cash flow in the TTM. While there was a significant improvement in free cash flow growth from the previous year, the negative operating cash flow to net income ratio highlights the company's struggle to generate cash from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	403.15M	393.41M	324.24M	252.48M	203.00M	187.51M
Gross Profit	59.28M	54.00M	59.57M	52.09M	40.85M	36.88M
EBITDA	-46.70M	-50.88M	-70.45M	8.40M	-7.94M	-11.29M
Net Income	-64.36M	-64.66M	-83.07M	152.00K	-10.93M	-14.32M
Balance Sheet
Total Assets	164.00M	172.72M	209.24M	263.75M	203.44M	65.69M
Cash, Cash Equivalents and Short-Term Investments	39.74M	49.67M	82.86M	73.81M	114.30M	6.00M
Total Debt	102.31M	123.15M	119.67M	108.18M	183.00K	11.93M
Total Liabilities	158.93M	169.13M	152.22M	139.07M	99.28M	37.59M
Stockholders Equity	5.07M	3.59M	57.02M	124.68M	104.16M	28.10M
Cash Flow
Free Cash Flow	-19.15M	-30.33M	-40.88M	-67.28M	-35.73M	-685.88K
Operating Cash Flow	-15.64M	-26.54M	-36.31M	-61.76M	-32.68M	508.24K
Investing Cash Flow	26.62M	46.21M	62.64M	-131.61M	-12.15M	-8.84M
Financing Cash Flow	-7.29M	-3.49M	-6.85M	92.21M	154.01M	11.89M

Oncology Institute Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TOI, the sentiment is Positive. The current price of 3.65 is above the 20-day moving average (MA) of 2.59, above the 50-day MA of 2.73, and above the 200-day MA of 1.26, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 70.15 is Negative, neither overbought nor oversold. The STOCH value of 81.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TOI.

Oncology Institute Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NHC	75 Outperform	$1.51B	14.09	11.19%	2.61%	19.16%	31.92%
EHC	65 Neutral	$10.81B	22.15	25.33%	0.63%	11.21%	30.38%
SEM	64 Neutral	$1.87B	10.99	10.38%	1.72%	-8.86%	-36.22%
ACHC	60 Neutral	$2.14B	11.13	6.35%	―	5.48%	―
TOI	54 Neutral	$272.98M	―	-227.77%	―	17.64%	13.86%
Sector *	52 Neutral	$7.47B	-0.04	-63.86%	2.34%	16.17%	0.25%
CYH	49 Neutral	$513.52M	―	39.18%	―	1.05%	-288.07%

Oncology Institute Corporate Events

Oncology Institute Explores PIPE Financing Opportunity

The Oncology Institute, Inc. has prepared an investor presentation to explore a potential private placement of securities, known as PIPE Financing. The presentation highlights the company’s unique approach in the oncology market, emphasizing its capability to manage population-level care contracts and its focus on reducing patient healthcare costs. The company’s strategy positions it to capitalize on the growing oncology market, driven by factors such as reimbursement misalignment and high-cost drugs.

The most recent analyst rating on (TOI) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on Oncology Institute stock, see the TOI Stock Forecast page.

Oncology Institute Holds Annual Stockholders Meeting

On May 7, 2025, The Oncology Institute held its Annual Meeting of Stockholders where three proposals were considered. The stockholders elected eight directors, ratified the appointment of BDO USA, LLP as the independent registered public accounting firm, and approved a proposal to amend the company’s certificate of incorporation to potentially effect a reverse stock split.

Oncology Institute COO Jeremy Castle Resigns

On May 2, 2025, Jeremy Castle announced his resignation as Chief Operating Officer of The Oncology Institute, Inc., effective May 30, 2025. His departure was not due to any disagreements with the company regarding its operations, policies, or practices.