dentalcorp Holdings (DNTL) AI Stock Analysis

• Market Cap: C$1.73B
• Dividend Yield: 0.29%
• Average Volume (3M): 219.81K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.86
• Revenue Growth: 8.37%
• EPS Growth: 31.42%
• Country: CA
• Employees: 10,200
• Sector: Healthcare
• Sector Strength: 74
• Industry: Medical - Care Facilities
• EPS (TTM): -0.31
• Shares Outstanding: 189,252,350
• 10 Day Avg. Volume: 143,356
• 30 Day Avg. Volume: 219,810
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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$12.78
• Price Target Upside: 46.22% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

dentalcorp Holdings shows strong growth in revenue and cash flow, supported by enhanced operational efficiency and positive corporate events. However, persistent profitability challenges and a negative valuation metric due to the negative P/E ratio temper its attractiveness. The technical analysis indicates stability, but without significant momentum. Overall, while the company is on a solid growth trajectory, financial hurdles remain, resulting in a moderate overall stock score.

Positive Factors

Acquisition Strategy

Management acquired 12 practices, which are expected to contribute significantly to adjusted EBITDA.

Financial Performance

The fundamentals of the company continue to improve with the highest margins in nine quarters.

Shareholder Value

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

Negative Factors

Debt Levels

Proceeds will be used to delever the balance sheet, reducing net debt/EBITDA.

Stock Overhang

The selling shareholder group remains an overhang on the stock.

dentalcorp Holdings Business Overview & Revenue Model

Company Description

Dentalcorp Holdings Ltd. is a leading network of dental practices in Canada, focused on acquiring and partnering with dental practices to deliver comprehensive dental care. The company operates in the healthcare sector, providing a wide range of dental services, including general dentistry, orthodontics, oral surgery, and other specialized dental healthcare services. Dentalcorp leverages its scale and resources to support its network of dental professionals in delivering high-quality patient care.

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 shows solid revenue growth and strong cash flow generation, but faces challenges with profitability and return on equity. The company's balance sheet is stable, with manageable debt levels and a healthy equity ratio.

Income Statement

In the TTM period, dentalcorp Holdings showed a positive revenue growth of 5.90% compared to the previous year. However, the net profit margin is negative, reflecting a net loss, which indicates profitability challenges. Gross profit margin is relatively strong at 38.70%, but EBIT and EBITDA margins are low at 2.57% and 13.22% respectively, signaling operational inefficiencies.

Balance Sheet

The balance sheet demonstrates a moderate debt-to-equity ratio of 0.79, suggesting manageable leverage. The equity ratio is healthy at 52.10%, indicating a strong capital structure. However, the return on equity is negative due to the net loss, pointing to challenges in generating shareholder value.

Cash Flow

Cash flow analysis reveals a robust operating cash flow to net income ratio of -2.31, indicating strong cash generation relative to earnings. The free cash flow to net income ratio is -1.88, demonstrating efficient conversion of earnings into cash. Free cash flow growth has been positive at 23.67%, supporting liquidity.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
1.43B	1.25B	1.03B	666.24M	767.49M
	Gross Profit
493.70M	611.90M	495.40M	321.65M	385.42M
	EBIT
43.50M	7.70M	-80.50M	-50.50M	14.65M
	EBITDA
197.40M	183.40M	75.10M	99.70M	117.78M
	Net Income Common Stockholders
-85.60M	-16.60M	-160.40M	-157.15M	-63.91M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
39.00M	110.50M	141.80M	101.54M	85.42M
	Total Assets
3.29B	3.38B	2.84B	2.57B	2.48B
	Total Debt
1.35B	1.37B	1.15B	1.65B	1.54B
	Net Debt
1.32B	1.26B	1.01B	1.55B	1.45B
	Total Liabilities
1.55B	1.59B	1.32B	1.98B	1.75B
	Stockholders Equity
1.74B	1.79B	1.51B	583.97M	727.15M
Cash Flow		Free Cash Flow
123.80M	106.00M	36.80M	-49.53M	1.30M
	Operating Cash Flow
153.40M	138.60M	55.10M	-32.28M	25.23M
	Investing Cash Flow
-172.10M	-419.80M	-262.90M	-154.06M	-308.14M
	Financing Cash Flow
-52.30M	247.50M	248.10M	202.46M	304.22M

dentalcorp Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 8.74 is above the 20-day moving average (MA) of 7.92, above the 50-day MA of 7.82, and above the 200-day MA of 8.25, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 66.83 is Neutral, neither overbought nor oversold. The STOCH value of 94.28 is Negative, 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
DNTL	66 Neutral	C$1.73B	―	-3.38%	0.29%	8.37%	31.42%
Sector *	52 Neutral	$5.28B	3.75	-42.72%	2.86%	17.70%	2.03%
MDNA	46 Neutral	C$95.42M	―	-149.09%	―	―	-67.03%
KNE	46 Neutral	C$11.00M	―	-813.02%	―	―	―
ONC	43 Neutral	C$67.41M	―	-184.69%	―	―	0.10%

dentalcorp Holdings Corporate Events

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.

Spark’s Take on TSE:DNTL Stock

According to Spark, TipRanks’ AI Analyst, TSE:DNTL is a Neutral.

dentalcorp Holdings shows strong revenue and cash flow growth, supported by improved operational efficiency. However, profitability challenges and negative valuation metrics such as a negative P/E ratio impact its attractiveness. The technical analysis indicates stability without strong momentum. While the recent corporate event of declaring a dividend and projecting growth is positive, it does not significantly change the current financial and technical landscape, resulting in a moderate overall score.

To see Spark’s full report on TSE:DNTL stock, click here.

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.

Dentalcorp to Engage with Stakeholders at Major Investor Conferences

Dentalcorp Holdings Ltd. announced its participation in several upcoming investor conferences across North America, including events in Las Vegas, New York, and Muskoka. This participation underscores Dentalcorp’s commitment to engaging with investors and stakeholders, potentially enhancing its visibility and influence in the healthcare sector.