Nova Leap Health (NLH) AI Stock Analysis

• Market Cap: C$24.01M
• Dividend Yield: N/A
• Average Volume (3M): 21.45K
• Price to Earnings (P/E): 22.9
• Beta (1Y): 0.66
• Revenue Growth: 19.61%
• EPS Growth: N/A
• Country: CA
• Employees: N/A
• Sector: General
• Sector Strength: N/A
• Industry: Medical - Care Facilities
• EPS (TTM): <0.01
• Shares Outstanding: 87,314,255
• 10 Day Avg. Volume: 17,344
• 30 Day Avg. Volume: 21,452
• PEG Ratio: -0.05
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 0.64
• P/FCF Ratio: 12.05
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: C$0.33 ▲(17.50% Upside)

The score is driven primarily by improving fundamentals—revenue growth, a conservative balance sheet, and positive free cash flow with solid earnings quality—tempered by margin compression and a recently inconsistent earnings history. Technicals are a notable drag with the stock trading below key moving averages and negative MACD, while valuation is middling with a ~23x P/E and no dividend data.

Positive Factors

Conservative leverage

A low debt-to-equity (~0.16) and a large equity base materially reduce financial risk, preserving borrowing capacity for agency roll-ups or working capital needs. This balance sheet conservatism supports resilience through reimbursement cycles and funds selective growth without stressing solvency.

Positive free cash flow

Free cash flow closely matches net income (FCF/NI ~0.98) and FCF grew ~13%, indicating earnings quality and repeatable cash generation. Reliable free cash allows the company to reinvest in operations, support agency integrations, and reduce reliance on external financing over the medium term.

Recurring service model & demand

A recurring, hourly-billed home-care model tied to aging and chronic-care needs provides structural demand and predictable revenue streams. This service-based business with local agency footprints supports steadier utilization and scalable margins as client volumes grow and agencies are consolidated.

Negative Factors

Margin compression

Declining net and EBITDA margins reduce the cash available to fund organic growth, acquisitions, and shareholder returns. Sustained margin pressure erodes return on invested capital, makes the roll-up strategy less accretive, and increases vulnerability to wage or reimbursement shocks over time.

Choppy multi-year earnings

Historic losses followed by recovery signal inconsistent profitability, complicating long-term planning, integration of acquisitions, and forecasting. Persistent earnings volatility can raise funding costs, hinder sustained margin improvement, and undermine confidence in the sustainability of growth initiatives.

Low cash conversion vs sales

Operating cash flow that covers only ~40% of sales indicates limited cash conversion efficiency and a narrow buffer against working capital swings or reimbursement delays. This constrains internal funding for expansion and raises reliance on external financing for larger acquisitions or capex needs.

Nova Leap Health Business Overview & Revenue Model

Company Description

Nova Leap Health Corp. provides home and home health care services in the United States and Canada. Its services include dementia care, companionship, personal and respite care, cooking and meal preparation, bathing, dressing, grooming, housekeeping, errands, transportation, and medication reminders by nursing staff. Nova Leap Health Corp. was incorporated in 2015 and is headquartered in Halifax, Canada.

How the Company Makes Money

Nova Leap Health generates revenue through its home health care services by charging clients for the hours of care provided. The company typically operates on a fee-for-service model, where clients are billed based on the specific services rendered. Key revenue streams include personal care services, which may involve assistance with daily living activities, and specialized care for clients with specific health needs. NLH also benefits from partnerships with healthcare providers and insurance companies, which can facilitate client referrals and enhance service offerings. Additionally, the company may explore opportunities for government contracts or funding programs aimed at supporting home health care services, contributing further to its earnings.

Nova Leap Health Financial Statement Overview

Summary

Revenue grew 6.6% TTM and the company is profitable with positive free cash flow (~$1.59M) that closely matches earnings (FCF/NI ~0.98). Offsetting this, profitability has compressed (net margin ~2.5% vs ~5.4% in 2024; EBITDA margin ~7.1% vs ~9.7%) and results have been inconsistent across recent years (losses in 2022–2023). Balance sheet leverage is conservative (D/E ~0.16), but returns are modest (ROE ~4.1%).

Income Statement

TTM (Trailing-Twelve-Months) revenue grew 6.6% and the company remains profitable, but profitability has compressed versus prior years: net margin is ~2.5% in TTM versus ~5.4% in 2024, and EBITDA margin fell to ~7.1% from ~9.7%. Results also show a choppier multi-year earnings profile (losses in 2022–2023 followed by a return to profits in 2024 and TTM), which lowers confidence in consistency.

Balance Sheet

Leverage appears conservative, with TTM debt-to-equity around 0.16 and equity representing a large portion of the capital structure. Return on equity is positive in TTM (~4.1%) but down from 2024 (~7.6%), indicating profitability is not yet translating into strong shareholder returns. Overall balance sheet risk looks manageable, with the main drawback being modest returns rather than heavy debt.

Cash Flow

Cash generation is positive with TTM operating cash flow of ~$1.62M and free cash flow of ~$1.59M, and free cash flow growth of ~13%. Free cash flow is closely aligned with reported earnings (free cash flow to net income ~0.98), supporting earnings quality. A key weakness is that operating cash flow is relatively small versus sales (coverage ~0.40 in TTM), suggesting limited cash conversion and less cushion if margins soften.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.96M	25.76M	26.18M	28.21M	21.28M	17.31M
Gross Profit	11.84M	9.89M	9.77M	9.98M	7.21M	5.87M
EBITDA	2.12M	2.50M	994.47K	420.35K	4.76M	2.36M
Net Income	750.13K	1.38M	-1.05M	-835.75K	1.76M	1.26M
Balance Sheet
Total Assets	23.59M	22.39M	20.90M	23.95M	26.77M	17.54M
Cash, Cash Equivalents and Short-Term Investments	1.57M	1.40M	894.76K	1.27M	1.73M	2.78M
Total Debt	3.01M	2.53M	1.40M	3.97M	6.20M	5.96M
Total Liabilities	4.83M	4.14M	2.70M	5.27M	8.29M	7.69M
Stockholders Equity	18.75M	18.25M	18.20M	18.68M	18.48M	9.84M
Cash Flow
Free Cash Flow	1.59M	1.36M	2.13M	949.49K	2.18M	3.01M
Operating Cash Flow	1.62M	1.39M	2.15M	1.02M	2.18M	3.01M
Investing Cash Flow	-2.58M	-1.59M	-23.13K	-56.24K	-7.40M	-1.56M
Financing Cash Flow	1.18M	729.78K	-2.52M	-1.41M	4.33M	-325.46K

Nova Leap Health Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NLH, the sentiment is Negative. The current price of 0.28 is below the 20-day moving average (MA) of 0.29, below the 50-day MA of 0.30, and below the 200-day MA of 0.28, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 44.58 is Neutral, neither overbought nor oversold. The STOCH value of 42.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:NLH.

Nova Leap Health Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXE	71 Outperform	C$1.94B	21.53	65.57%	2.28%	11.59%	41.99%
DR	71 Outperform	C$271.07M	2.12	39.85%	2.35%	-40.05%	558.77%
SIA	63 Neutral	C$1.99B	47.27	7.07%	4.47%	11.47%	6.45%
NLH	62 Neutral	C$24.01M	22.92	4.10%	―	19.61%	―
CRRX	59 Neutral	C$242.13M	3,860.00	0.11%	1.03%	0.19%	―
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
PHA	45 Neutral	C$1.39M	-0.09	-1473.72%	―	-22.61%	7.72%

Nova Leap Health Corporate Events

Nova Leap Elevates Melissa Anderson to Senior Vice President as U.S. Expansion Accelerates

Nova Leap Health Corp. has promoted Melissa Anderson from Vice President, Operations (U.S.) to Senior Vice President (U.S.), effective January 1, 2026, reflecting her central role in enhancing the company’s U.S. operations through operational improvements, leadership development and EBITDA growth. In her expanded role, Anderson will oversee U.S. home care operations, including strategic planning, performance, expansion into new states, and integration of new service lines such as the recently launched Care Management division, a move that underscores Nova Leap’s continued expansion across the United States and Canada through targeted acquisitions and de novo growth supported by scalable infrastructure.

The most recent analyst rating on (TSE:NLH) stock is a Buy with a C$0.34 price target. To see the full list of analyst forecasts on Nova Leap Health stock, see the TSE:NLH Stock Forecast page.

Nova Leap Health Corp. Launches Care Management Division in the U.S.

Nova Leap Health Corp. has announced the launch of a new Care Management division in the United States, aiming to enhance care delivery and outcomes across the healthcare continuum. Led by Breanne Muchemore, the division will initially focus on the Massachusetts market, offering services such as care coordination, dementia navigation, and transitional care management. This strategic expansion is expected to broaden Nova Leap’s role in the care continuum, deepen client and partner relationships, and create new revenue streams, contributing to the company’s long-term growth strategy.

The most recent analyst rating on (TSE:NLH) stock is a Buy with a C$0.34 price target. To see the full list of analyst forecasts on Nova Leap Health stock, see the TSE:NLH Stock Forecast page.

Nova Leap Health Corp. Issues Stock Options to Key Personnel

Nova Leap Health Corp., a prominent player in the home health care industry, has announced the issuance of 950,000 stock options to its directors, officers, and senior employees. This strategic move, under the company’s Equity Incentive Plan, is likely to enhance employee engagement and align interests with shareholders, potentially impacting the company’s growth trajectory and market positioning positively.

The most recent analyst rating on (TSE:NLH) stock is a Buy with a C$0.34 price target. To see the full list of analyst forecasts on Nova Leap Health stock, see the TSE:NLH Stock Forecast page.

Nova Leap Health Corp. Achieves Record Q3 2025 Financial Performance

Nova Leap Health Corp. announced record-breaking financial results for Q3 2025, marking the best performance in the company’s history. The company achieved record consolidated revenues, gross margin, and Adjusted EBITDA across its Canadian and U.S. operating segments. With a 3% increase in revenues from the previous quarter and a significant improvement in net income, Nova Leap demonstrates strong operational discipline and growth potential. The company’s robust financial performance is supported by a strong balance sheet and access to acquisition financing, positioning it well for future expansion and value creation.

The most recent analyst rating on (TSE:NLH) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on Nova Leap Health stock, see the TSE:NLH Stock Forecast page.

Nova Leap Health Corp. Achieves Record Q3 2025 Financial Results

Nova Leap Health Corp. announced record-breaking financial results for Q3 2025, marking the best performance in the company’s history. The company achieved record consolidated revenues, gross margins, and Adjusted EBITDA across its Canadian and U.S. segments. The strong financial performance is attributed to consistent execution and operational discipline, with significant improvements in net income and operating cash flow. The company maintains a robust balance sheet with substantial credit available for future acquisitions, supporting its long-term growth strategy.

The most recent analyst rating on (TSE:NLH) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on Nova Leap Health stock, see the TSE:NLH Stock Forecast page.