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Dentalcorp Holdings Ltd. (TSE:DNTL)
:DNTL
Canadian Market
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dentalcorp Holdings (DNTL) AI Stock Analysis

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TSE:DNTL

dentalcorp Holdings

(TSX:DNTL)

Rating:64Neutral
Price Target:
C$9.00
▲(10.84%Upside)
Dentalcorp Holdings' overall stock score is driven by its robust financial performance with revenue growth and operational efficiency, despite ongoing profitability challenges. Positive corporate events and strategic initiatives enhance investor confidence. However, negative valuation metrics and mixed technical signals temper the overall score.
Positive Factors
Cash Flow and Acquisitions
Strong free cash flow generation supports mergers and acquisitions as well as debt reduction, showcasing the strength of the business.
Earnings and Mergers
There are expectations for continued strength in earnings and upside from mergers and acquisitions.
Revenue Growth
Management is confident in achieving 3-5% same-store revenue growth and expects margin expansion of 25-35 basis points annually, driven by operating leverage.
Negative Factors
Market Expansion
Potential expansion into the U.S. market offers an opportunity for higher returns on invested capital, adding to the company's growth potential.
Operational Strategy
The company follows a proven M&A model and operational discipline that supports thoughtful expansion beyond Canada.
Shareholder Value
The company's decision to start paying a dividend underscores management's commitment to driving shareholder value.

dentalcorp Holdings (DNTL) vs. iShares MSCI Canada ETF (EWC)

dentalcorp Holdings Business Overview & Revenue Model

Company Descriptiondentalcorp Holdings Ltd., through its subsidiaries, acquires and partners with dental practices to provide health care services in Canada. As of December 31, 2021, it owned and operated a network of approximately 458 dental practices supported by approximately 7,400 team members, including 1,400 dentists, 1,700 hygienists, and 4,100 auxiliary dental health professionals. The company was formerly known as Dentalcorp Overbite Ltd. dentalcorp Holdings Ltd. was founded in 2011 and is headquartered in Toronto, Canada.
How the Company Makes MoneyDentalcorp Holdings makes money primarily through its network of dental practices. The company generates revenue by providing dental services to patients across its partner clinics. These services range from routine check-ups and cleanings to specialized procedures such as orthodontics and oral surgery. Dentalcorp's revenue model is based on the fees collected for these services. Additionally, the company benefits from its strategy of acquiring and integrating dental practices, which allows it to expand its network and increase its revenue base. Strategic partnerships with dental professionals and suppliers also play a crucial role in enhancing operational efficiencies and profit margins.

dentalcorp Holdings Earnings Call Summary

Earnings Call Date:May 12, 2025
(Q3-2024)
|
% Change Since: -7.52%|
Next Earnings Date:Aug 08, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong financial performance with significant growth in revenue, EBITDA, and free cash flow conversion. Strategic acquisitions and partnerships, particularly in AI technology, bolster future growth prospects. However, there are potential challenges with the continued rollout of the CDCP and interest rate expenses. Overall, the sentiment is positive due to the outweighing highlights.
Q3-2024 Updates
Positive Updates
Strong Revenue and EBITDA Growth
Revenue for Q3 2024 was $375.4 million, up 11.4% from Q3 2023. Adjusted EBITDA was $68.9 million, an increase of 13.1% over the same period.
Improved Free Cash Flow Conversion
Free cash flow conversion improved to 63% on an LTM basis, up from 58% in Q3 2023.
Successful M&A Activity
Acquired 4 practices for $16 million, expected to generate $2.3 million in pro forma adjusted EBITDA. Completed 9 acquisitions post-quarter-end, reaching the annual target of $20 million in acquired EBITDA.
Strategic Partnerships and Innovations
Formed a strategic partnership with VideaHealth to deploy AI technology across the network, enhancing clinical excellence and business efficiencies.
Deleveraging Efforts
Net leverage reduced to 4.0x, down 0.4x from the previous year, marking the fourth consecutive quarter of deleveraging.
Positive Outlook for Q4 2024
Anticipated revenue growth of 8% to 10% over Q4 2023, with adjusted EBITDA margins expected to increase by 20 basis points.
Negative Updates
Potential Disruption from CDCP Rollout
Uncertainty regarding the timing of the CDCP expansion to 18-64 age group could cause disruptions similar to the initial rollout in early 2024.
Interest Rate Challenges
Interest rate ceiling of 6% through January 2028, though improved from 6.6%, still represents a significant expense.
Company Guidance
During the Dentalcorp Q3 2024 earnings call, the company provided guidance indicating a robust financial performance with several key metrics. Dentalcorp reported a revenue of $375.4 million for the third quarter, marking an 11.4% increase from the same period in 2023. Adjusted EBITDA rose to $68.9 million, reflecting a 13.1% growth, while EBITDA margins improved by 30 basis points to 18.4%. The company also highlighted a same practice revenue growth of 4.2% for the quarter and achieved a free cash flow per share of $0.19, up by 36.4% year-over-year. They completed acquisitions adding $8.5 million in pro forma adjusted EBITDA after rent, bringing them close to their annual target of $20 million. Looking forward, Dentalcorp expects an 8% to 10% revenue increase in Q4 2024, with adjusted EBITDA margins projected to rise by 20 basis points compared to Q4 2023. Additionally, free cash flow conversion improved to 63% on an LTM basis, up from 58% in Q3 2023, with net leverage reduced to 4.0x, continuing a trend of deleveraging for the fourth consecutive quarter.

dentalcorp Holdings Financial Statement Overview

Summary
Dentalcorp Holdings shows strong revenue growth and operational efficiency, with a 25% rise in revenue from two years ago and an EBITDA margin of 14.1% TTM. However, consistent net losses and a net profit margin of -3.7% reflect challenges in profitability. The balance sheet is stable with a manageable debt-to-equity ratio of 0.78, while cash flows support operations despite profitability issues.
Income Statement
65
Positive
The income statement reflects improving revenue growth, with a 2.40% increase from the previous year and a strong 25% rise from the year before. Gross profit margin stands at 46.3% TTM, showing efficiency in core operations. However, consistent net losses indicate challenges in overall profitability, with the net profit margin at -3.7%. EBITDA margin of 14.1% TTM suggests reasonable operational profitability before accounting for non-operating expenses.
Balance Sheet
70
Positive
The balance sheet displays a stable equity base with a decent equity ratio of 51.8% TTM. The debt-to-equity ratio is 0.78, indicating manageable leverage, which is crucial for financial stability. Return on equity is negative due to net losses, highlighting a need for improved profitability to enhance shareholder returns.
Cash Flow
75
Positive
Cash flow analysis shows solid operating cash flow, with a free cash flow to net income ratio of -2.6, which is a concern due to net losses. However, free cash flow showed a minor decline of 0.4% from the previous year, indicating resilience in cash generation despite profitability challenges. The operating cash flow to net income ratio of -3.45 reflects strong cash generation relative to net losses.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.55B1.43B1.25B1.03B666.20M
Gross Profit772.70M493.70M611.90M495.40M321.60M
EBITDA222.20M197.40M183.40M75.10M99.70M
Net Income-59.40M-85.60M-16.60M-160.40M-157.10M
Balance Sheet
Total Assets3.38B3.29B3.38B2.84B2.57B
Cash, Cash Equivalents and Short-Term Investments79.50M39.00M110.50M141.80M101.50M
Total Debt1.37B1.35B1.37B1.15B1.65B
Total Liabilities1.61B1.55B1.59B1.32B1.99B
Stockholders Equity1.77B1.74B1.79B1.51B584.00M
Cash Flow
Free Cash Flow147.10M123.80M106.00M36.80M-52.40M
Operating Cash Flow194.20M153.40M138.60M55.10M-35.20M
Investing Cash Flow-170.80M-172.10M-419.80M-262.90M-151.30M
Financing Cash Flow16.50M-52.30M247.50M248.10M202.60M

dentalcorp Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price8.12
Price Trends
50DMA
8.39
Negative
100DMA
8.17
Negative
200DMA
8.34
Negative
Market Momentum
MACD
-0.06
Negative
RSI
45.72
Neutral
STOCH
46.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DNTL, the sentiment is Negative. The current price of 8.12 is below the 20-day moving average (MA) of 8.19, below the 50-day MA of 8.39, and below the 200-day MA of 8.34, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 45.72 is Neutral, neither overbought nor oversold. The STOCH value of 46.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:DNTL.

dentalcorp Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$284.27M2.2533.87%0.15%-29.54%667.77%
68
Neutral
C$1.68B42.606.93%5.19%8.76%14.05%
68
Neutral
C$1.05B13.8871.61%4.04%9.38%117.85%
64
Neutral
C$1.61B-3.31%0.62%9.88%11.07%
62
Neutral
C$1.19B30.45-3.53%17.19%-191.01%
61
Neutral
C$183.22M-4.48%-0.69%8.08%
52
Neutral
$7.61B0.10-63.03%2.08%16.34%0.32%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:DNTL
dentalcorp Holdings
8.05
0.08
1.00%
TSE:DR
Medical Facilities
14.89
1.15
8.39%
TSE:EXE
Extendicare
12.46
5.12
69.75%
TSE:SIA
Sienna Senior Living
18.19
3.53
24.08%
TSE:CRRX
CareRx
2.92
0.58
24.79%
TSE:WELL
WELL Health Technologies Corp
4.68
-0.27
-5.45%

dentalcorp Holdings Corporate Events

Business Operations and Strategy
Dentalcorp to Present at Key Investor Conferences in September 2025
Positive
Jul 14, 2025

Dentalcorp Holdings Ltd., a leading network of dental practices in Canada and North America, announced its participation in several upcoming investor conferences in September 2025. These events, including the Morgan Stanley Global Healthcare Conference and the Jefferies Healthcare Services Conference, provide an opportunity for Dentalcorp to showcase its growth and strategic initiatives, potentially enhancing its industry positioning and stakeholder engagement.

The most recent analyst rating on (TSE:DNTL) stock is a Buy with a C$11.00 price target. To see the full list of analyst forecasts on dentalcorp Holdings stock, see the TSE:DNTL Stock Forecast page.

DividendsFinancial Disclosures
Dentalcorp Declares Dividend and Schedules Q2 2025 Results Release
Neutral
Jun 20, 2025

Dentalcorp Holdings Ltd., a leading network of dental practices in Canada and North America, has declared a dividend of $0.025 per share, payable on July 22, 2025, to shareholders of record as of July 3, 2025. The company also announced that it will release its second-quarter 2025 financial results on August 8, 2025, followed by a conference call to provide a business update, which may influence stakeholder perceptions and market positioning.

The most recent analyst rating on (TSE:DNTL) stock is a Buy with a C$11.00 price target. To see the full list of analyst forecasts on dentalcorp Holdings stock, see the TSE:DNTL Stock Forecast page.

Business Operations and Strategy
Dentalcorp to Engage with Investors at Key Conferences
Positive
May 23, 2025

Dentalcorp Holdings Ltd., a leading network of dental practices in Canada and North America, announced its participation in upcoming investor conferences, including the Jefferies Global Healthcare Conference and Canaccord Genuity’s Annual Growth Conference. This participation underscores Dentalcorp’s commitment to engaging with investors and stakeholders, potentially enhancing its industry positioning and growth prospects.

The most recent analyst rating on (TSE:DNTL) stock is a Buy with a C$11.00 price target. To see the full list of analyst forecasts on dentalcorp Holdings stock, see the TSE:DNTL Stock Forecast page.

Shareholder MeetingsBusiness Operations and Strategy
Dentalcorp Announces AGM Voting Results and Strategic Amendments
Positive
May 22, 2025

Dentalcorp Holdings announced the results of its Annual General and Special Meeting of Shareholders, where all nominated directors were elected, Ernst & Young LLP was re-appointed as auditors, and amendments to the company’s Equity Incentive Plan, Legacy Option Plan, and Deferred Share Unit were approved. These decisions reflect the company’s strategic focus on strengthening its governance and operational framework, potentially enhancing its position in the dental industry and providing growth opportunities for stakeholders.

The most recent analyst rating on (TSE:DNTL) stock is a Buy with a C$11.00 price target. To see the full list of analyst forecasts on dentalcorp Holdings stock, see the TSE:DNTL Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Dentalcorp Holdings Reports Strong Q1 2025 Results and Positive Outlook
Positive
May 12, 2025

Dentalcorp Holdings reported robust financial results for the first quarter of 2025, with a 9.9% increase in revenue to $409.4 million and a 11.5% rise in Adjusted EBITDA to $75.9 million. The company expanded its national footprint by acquiring 12 new practice locations and achieved a 91.5% recurring patient visit rate, reflecting strong demand and patient loyalty. Looking ahead, Dentalcorp anticipates continued growth in the second quarter, with expected revenue increases of 9.0% to 10.0% and further Adjusted EBITDA margin expansion.

The most recent analyst rating on (TSE:DNTL) stock is a Buy with a C$11.0000 price target. To see the full list of analyst forecasts on dentalcorp Holdings stock, see the TSE:DNTL Stock Forecast page.

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.Date of analysis: Jul 15, 2025