dentalcorp Holdings (DNTL) AI Stock Analysis

• Market Cap: C$1.74B
• Dividend Yield: 0.29%
• Average Volume (3M): 140.87K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• Revenue Growth: 9.88%
• EPS Growth: 11.07%
• Country: CA
• Employees: 10,200
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Care Facilities
• EPS (TTM): 0.11
• Shares Outstanding: 189,308,620
• 10 Day Avg. Volume: 101,778
• 30 Day Avg. Volume: 140,867
• PEG Ratio: -9.33
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.94
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$12.46
• Price Target Upside: 44.72% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 72 Outperform
• Price Target: C$9.50 ▲(10.34%Upside)

Dentalcorp Holdings shows solid financial performance with strong revenue growth and operational efficiency, albeit hampered by persistent net losses. Technical indicators are positive with upward momentum. Corporate events highlight strategic growth and investor engagement. However, valuation is a concern due to negative earnings, impacting overall attractiveness.

Positive 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.

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.

Shareholder Value

The company's decision to start paying a dividend underscores management's commitment to driving shareholder value.

Negative Factors

Stock Overhang

The selling shareholder group remains an overhang on the stock.

dentalcorp Holdings Business Overview & Revenue Model

Company Description

dentalcorp 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 Money

Dentalcorp 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 Financial Statement Overview

Summary

Dentalcorp Holdings demonstrates growth in revenue and operational efficiency, but persistent net losses affect overall financial health. The balance sheet is stable with manageable leverage, and cash flows are robust, supporting operational needs despite profitability issues. The company should focus on translating operational gains into net profits for improved financial standing.

Income Statement

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

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

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.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.58B	1.55B	1.43B	1.25B	1.03B	666.20M
	Gross Profit
732.20M	772.70M	493.70M	611.90M	495.40M	321.60M
	EBIT
67.60M	52.70M	43.50M	7.70M	-81.50M	-50.50M
	EBITDA
222.70M	222.20M	197.40M	183.40M	75.10M	99.70M
	Net Income Common Stockholders
-57.90M	-59.40M	-85.60M	-16.60M	-160.40M	-157.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
231.97M	79.50M	39.00M	110.50M	141.80M	101.50M
	Total Assets
2.75B	3.38B	3.29B	3.38B	2.84B	2.57B
	Total Debt
1.82B	1.37B	1.35B	1.37B	1.15B	1.65B
	Net Debt
1.59B	1.29B	1.32B	1.26B	1.01B	1.55B
	Total Liabilities
2.17B	1.61B	1.55B	1.59B	1.32B	1.99B
	Stockholders Equity
580.46M	1.77B	1.74B	1.79B	1.51B	584.00M
Cash Flow		Free Cash Flow
147.70M	147.10M	123.80M	106.00M	36.80M	-52.40M
	Operating Cash Flow
199.80M	194.20M	153.40M	138.60M	55.10M	-35.20M
	Investing Cash Flow
-214.50M	-170.80M	-172.10M	-419.80M	-262.90M	-151.30M
	Financing Cash Flow
19.20M	16.50M	-52.30M	247.50M	248.10M	202.60M

dentalcorp Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DNTL, the sentiment is Positive. The current price of 8.61 is below the 20-day moving average (MA) of 8.72, above the 50-day MA of 8.38, and above the 200-day MA of 8.35, indicating a bullish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 56.52 is Neutral, neither overbought nor oversold. The STOCH value of 42.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:DNTL.

dentalcorp Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXE	73 Outperform	C$1.20B	15.67	71.61%	3.36%	9.38%	117.85%
SIA	72 Outperform	C$1.71B	43.83	6.93%	5.04%	8.76%	14.05%
DNTL	72 Outperform	C$1.74B	―	-3.31%	0.29%	9.88%	11.07%
WELL	65 Neutral	C$1.04B	30.45	-3.53%	―	17.19%	-191.01%
CRRX	61 Neutral	C$178.13M	―	-4.48%	―	-0.69%	8.08%
Sector *	54 Neutral	$5.37B	3.35	-45.10%	2.79%	16.77%	-0.01%
MFCSF		$216.51M	2.38	33.87%	2.29%	―	―

dentalcorp Holdings Corporate Events

Dentalcorp to Engage with Investors at Key Conferences

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.

Dentalcorp Announces AGM Voting Results and Strategic Amendments

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.

Dentalcorp Holdings Reports Strong Q1 2025 Results and Positive Outlook

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.

Dentalcorp Announces Virtual Annual General Meeting for Shareholders

Dentalcorp Holdings Ltd. announced it will hold its Annual General and Special Meeting of Shareholders on May 22, 2025, in a virtual-only format to ensure equal participation opportunities for shareholders regardless of location. This meeting is significant for stakeholders as it reflects Dentalcorp’s commitment to transparency and inclusivity, potentially strengthening its position in the dental industry by fostering trust and engagement with its shareholders.

Dentalcorp to Announce Q1 2025 Financial Results

Dentalcorp Holdings Ltd. announced the release date for its first quarter 2025 financial results, scheduled for May 12, 2025, before the market opens. The company will also hold a conference call on the same day to provide a business update, which will include a question-and-answer session. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor confidence.

Dentalcorp Reports Strong 2024 Financial Results and Declares First Dividend

Dentalcorp Holdings reported strong financial results for the fourth quarter and full year of 2024, with significant revenue and Adjusted EBITDA growth. The company declared its inaugural dividend, reflecting robust financial health. Revenue for the fourth quarter was $397.5 million, marking a 9.7% increase from the previous year, while full-year revenue grew by 8.4% to $1,545.1 million. The company expanded its operations by acquiring 30 new practice locations in 2024, reinforcing its position as a leading dental service provider. Looking ahead, Dentalcorp projects continued growth in 2025, with revenue expected to increase by 10% to 11% and further expansion through acquisitions.