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Nova Leap Health Corp (TSE:NLH)
:NLH
Canadian Market

Nova Leap Health (NLH) AI Stock Analysis

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TS

Nova Leap Health

(NLH)

Rating:70Outperform
Price Target:
C$0.50
▲(85.19%Upside)
Nova Leap Health's score is primarily supported by its improved financial performance and positive corporate events. While technical analysis indicates potential momentum, valuation constraints dampen the overall score. The company's strategic initiatives and acquisition are notable positives.

Nova Leap Health (NLH) vs. iShares MSCI Canada ETF (EWC)

Nova Leap Health Business Overview & Revenue Model

Company DescriptionNova Leap Health (NLH) is a rapidly growing company specializing in the home health care sector. The company focuses on acquiring, managing, and integrating home health care businesses across North America, primarily in the United States and Canada. Nova Leap Health provides essential home care services tailored to meet the needs of the elderly and individuals with physical or mental health challenges, ensuring they receive the support needed to maintain their quality of life in a home setting.
How the Company Makes MoneyNova Leap Health makes money by acquiring and operating home health care businesses that provide services such as personal care, companionship, and assistance with daily living activities. The company's revenue model is based on a fee-for-service structure, where they charge clients or their families for the home care services provided. Additionally, Nova Leap Health may receive payments from government programs, insurance companies, or other third-party payers, depending on the region and specific client circumstances. Strategic acquisitions of underperforming or undervalued home care businesses allow Nova Leap Health to expand its market presence and increase revenue streams, leveraging economies of scale and operational efficiencies to enhance profitability.

Nova Leap Health Financial Statement Overview

Summary
Nova Leap Health shows a mixed financial performance with a positive shift in net income in 2024 and a strong equity position. However, revenue has declined, and cash flow from operations has decreased, indicating challenges in revenue growth and cash generation.
Income Statement
67
Positive
Nova Leap Health has demonstrated fluctuations in revenue with a notable decline from $28.2M in 2022 to $25.8M in 2024. Gross profit margin has remained relatively stable, yet net income turned positive in 2024 at $1.38M from a loss in previous years, indicating improved profitability. EBIT and EBITDA margins are positive but show room for enhancement, highlighting potential operational efficiency improvements.
Balance Sheet
72
Positive
The company maintains a healthy equity base with an equity ratio of approximately 81.5% in 2024. The debt-to-equity ratio is relatively low at 0.14, suggesting manageable leverage. Return on equity improved significantly in 2024, reflecting enhanced profitability and effective use of equity.
Cash Flow
60
Neutral
Operating cash flow decreased to $1.39M in 2024 from $2.15M in 2023, reflecting potential challenges in cash generation from operations. However, the company maintains positive free cash flow. The operating cash flow to net income ratio is strong at 1.01, indicating efficient conversion of income to cash.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue25.76M26.18M28.21M21.28M17.31M
Gross Profit9.89M9.77M9.98M7.21M5.87M
EBITDA2.50M994.47K420.35K4.76M2.36M
Net Income1.38M-1.05M-835.75K1.76M1.26M
Balance Sheet
Total Assets22.39M20.90M23.95M26.77M17.54M
Cash, Cash Equivalents and Short-Term Investments1.40M894.76K1.27M1.73M2.78M
Total Debt2.53M1.40M3.97M6.20M5.96M
Total Liabilities4.14M2.70M5.27M8.29M7.69M
Stockholders Equity18.25M18.20M18.68M18.48M9.84M
Cash Flow
Free Cash Flow1.36M2.13M949.49K2.18M3.01M
Operating Cash Flow1.39M2.15M1.02M2.18M3.01M
Investing Cash Flow-1.59M-23.13K-56.24K-7.40M-1.56M
Financing Cash Flow729.78K-2.52M-1.41M4.33M-325.46K

Nova Leap Health Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.27
Price Trends
50DMA
0.26
Positive
100DMA
0.25
Positive
200DMA
0.26
Positive
Market Momentum
MACD
<0.01
Negative
RSI
52.70
Neutral
STOCH
73.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NLH, the sentiment is Positive. The current price of 0.27 is above the 20-day moving average (MA) of 0.27, above the 50-day MA of 0.26, and above the 200-day MA of 0.26, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.70 is Neutral, neither overbought nor oversold. The STOCH value of 73.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:NLH.

Nova Leap Health Peers Comparison

Overall Rating
UnderperformOutperform
Sector (46)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSNLH
70
Outperform
C$23.40M20.304.53%4.09%
61
Neutral
C$185.10M-4.48%-0.69%8.08%
TSPHA
46
Neutral
C$3.05M-239.50%3.03%-410.90%
46
Neutral
C$194.28M-4.22-8.60%2.64%13.54%-1.44%
TSJNH
34
Underperform
C$413.49K111.59%22.44%-3.91%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:NLH
Nova Leap Health
0.27
0.00
0.00%
TSE:CRRX
CareRx
2.94
0.82
38.68%
TSE:PHA
Premier Health of America Inc
0.06
-0.34
-85.00%
TSE:JNH
Jack Nathan Medical
0.01
-0.02
-66.67%

Nova Leap Health Corporate Events

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Nova Leap Health Corp’s Shareholders Approve Key Business Items at Annual Meeting
Positive
May 23, 2025

Nova Leap Health Corp announced that all items of business were approved at their annual and special meeting of shareholders, including the election of six board members and the re-appointment of their auditor. Additionally, the company’s 10% rolling equity incentive plan was ratified, reflecting strong shareholder support and potentially impacting the company’s strategic initiatives and stakeholder interests.

The most recent analyst rating on (TSE:NLH) stock is a Buy with a C$0.60 price target. To see the full list of analyst forecasts on Nova Leap Health stock, see the TSE:NLH Stock Forecast page.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Nova Leap Health Corp. Reports Q1 2025 Financial Results and Strategic Expansions
Neutral
May 8, 2025

Nova Leap Health Corp. reported a 7.7% increase in Q1 2025 revenues compared to Q4 2024, although Adjusted EBITDA decreased by 30%. The company made strategic acquisitions in Nova Scotia, contributing to its fastest-growing segment, and opened a new office in Kentucky. Despite a net loss in Q1, the company expects record revenues in Q2, driven by recent investments and acquisitions.

M&A TransactionsBusiness Operations and Strategy
Nova Leap Health Expands with Nova Scotia Acquisition
Positive
May 6, 2025

Nova Leap Health Corp. has completed the acquisition of a home care services company in Nova Scotia for $390,000, funded with cash on hand. This acquisition is part of Nova Leap’s strategy to expand its market presence in Nova Scotia, enhancing its operations and potentially benefiting stakeholders by increasing its service capacity in the region.

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 03, 2025