Nova Leap Health (NLH) AI Stock Analysis

• Market Cap: C$23.40M
• Dividend Yield: N/A
• Average Volume (3M): 22.14K
• Price to Earnings (P/E): 20.3
• Beta (1Y): 0.18
• Revenue Growth: 4.09%
• EPS Growth: N/A
• Country: CA
• Employees: N/A
• Sector: Healthcare
• Sector Strength: 39
• Industry: Medical - Care Facilities
• EPS (TTM): >-0.01
• Shares Outstanding: 87,314,255
• 10 Day Avg. Volume: 2,701
• 30 Day Avg. Volume: 22,137
• PEG Ratio: 0.11
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.08
• Enterprise Value/Market Cap: 0.73
• Enterprise Value/Revenue: 0.16
• Enterprise Value/Gross Profit: 1.72
• Enterprise Value/Ebitda: 2.84
• 1Y Price Target: C$0.60
• Price Target Upside: 122.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• 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 Business Overview & Revenue Model

Company Description

Nova 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 Money

Nova 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

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

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

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.

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

Nova Leap Health Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NLH	70 Outperform	C$23.40M	20.30	4.53%	―	4.09%	―
CRRX	61 Neutral	C$185.10M	―	-4.48%	―	-0.69%	8.08%
PHA	46 Neutral	C$3.05M	―	-239.50%	―	3.03%	-410.90%
Sector *	46 Neutral	C$194.28M	-4.22	-8.60%	2.64%	13.54%	-1.44%
JNH	34 Underperform	C$413.49K	―	111.59%	―	22.44%	-3.91%

Nova Leap Health Corporate Events

Nova Leap Health Corp’s Shareholders Approve Key Business Items at Annual Meeting

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.

Nova Leap Health Corp. Reports Q1 2025 Financial Results and Strategic Expansions

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.

Nova Leap Health Expands with Nova Scotia Acquisition

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.