Quipt Home Medical (QIPT) AI Stock Analysis

• Market Cap: C$124.96M
• Dividend Yield: N/A
• Average Volume (3M): 12.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.06
• Revenue Growth: 2.00%
• EPS Growth: -38.48%
• Country: CA
• Employees: 1,200
• Sector: Healthcare
• Sector Strength: 76
• Industry: Medical - Devices
• EPS (TTM): -0.21
• Shares Outstanding: 43,091,274
• 10 Day Avg. Volume: 17,207
• 30 Day Avg. Volume: 12,898
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.42
• Price to Cash Flow (P/CF): 2.70
• P/FCF Ratio: 3.40
• 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$6.20
• Price Target Upside: 113.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Quipt Home Medical shows strong cash flow management and operational efficiency improvements, as highlighted in the earnings call. However, the stock is experiencing weak technical momentum and has valuation challenges due to negative profitability and lack of dividends. The company's revenue decline and external challenges also pose risks. Overall, while there is potential for growth, significant obstacles must be addressed.

Positive Factors

Financial Health

The adj-EBITDA improved sequentially, providing an encouraging sign of financial health.

Investor Confidence

The stake by Kanen Wealth Management increased to 5.9%, indicating confidence in Quipt's potential.

Strategic Initiatives

Quipt is focusing on organic growth by reinforcing patient referral relationships, expanding its footprint, and broadening its product portfolio while maintaining margins.

Negative Factors

Board Nomination Issues

The company acknowledged the receipt of notice to nominate directors and opposition to the company's Board nominations.

Revenue Challenges

The termination of a disposable supply contract is expected to cause a $2.5 million headwind in revenue growth.

Sector Headwinds

Quipt has underperformed, driven by headwinds encountered by the managed care sector on higher medical cost trends and reimbursement changes.

Quipt Home Medical Business Overview & Revenue Model

Company Description

Quipt Home Medical Corp. provides in-home medical equipment and supplies, and respiratory and durable medical equipment in the United States. It offers management of various chronic disease states focusing on patients with heart and pulmonary disease, sleep apnea, reduced mobility, and other chronic health conditions. The company also provides bariatric equipment, bathroom safety products, bilevel positive airway pressure, canes/crutches, continuous positive airway pressure, CPAP masks and accessories, hospital beds, humidifiers, nebulizers and compressors, oxygen concentrators, patient lifts, walkers, wheelchairs, and products for wound care. In addition, it offers ventilators; home-based sleep apnea and chronic obstructive pulmonary disease treatments; home-based healthcare logistics and services; medical supplies, medical equipment, mobility equipment, and respiratory equipment; and CPAP and BiPAP units, ventilation equipment and aids, daily and ambulatory aides, and equipment solutions, as well as home and hospital delivery, and oxygen therapy services. The company was formerly known as Protech Home Medical Corp. and changed its name to Quipt Home Medical Corp. in May 2021. Quipt Home Medical Corp. was incorporated in 1993 and is headquartered in Wilder, Kentucky.

How the Company Makes Money

Quipt Home Medical generates revenue primarily through the sale and rental of its durable medical equipment and home respiratory solutions. This includes oxygen therapy systems, sleep apnea devices, and other respiratory-related equipment that are essential for patients with chronic conditions. The company works closely with healthcare providers and insurance companies to ensure that its services are accessible and reimbursable, which plays a crucial role in its revenue model. Additionally, Quipt benefits from recurring revenue streams through ongoing patient care services and the sale of disposable supplies used in conjunction with its equipment. Strategic partnerships with medical institutions and insurance firms further enhance its market reach and financial performance.

Quipt Home Medical Financial Statement Overview

Summary

Quipt Home Medical displays strong revenue growth and solid cash flow management. However, challenges in achieving net profitability and managing increasing liabilities are notable concerns. The company's financial health is bolstered by consistent operational cash flow, suggesting potential for improved profitability with strategic adjustments.

Income Statement

Quipt Home Medical has demonstrated consistent revenue growth, with a revenue increase from $221.74 million in 2023 to $241.93 million in TTM 2024, highlighting positive sales momentum. However, despite growing revenues and gross profit margins (71.6% in TTM 2024), profitability remains a challenge, as indicated by negative net income margins (-3% in TTM 2024). The EBIT margin is marginally positive, suggesting minimal operational profitability.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 0.95 in TTM 2024, reflecting balanced leverage. However, the return on equity is concerning due to negative net income, affecting shareholder returns. The equity ratio remains stable at approximately 43.8%, indicating a sound capital structure but with limited financial flexibility due to rising liabilities.

Cash Flow

Quipt Home Medical exhibits robust cash flow management, with a healthy free cash flow of $20.52 million in TTM 2024. The operating cash flow to net income ratio is strong, showcasing effective cash generation from operations despite net losses. Free cash flow growth has been variable, but the company maintains a solid cash position to support future investments and operations.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
241.93M	245.91M	221.74M	139.86M	102.35M	54.85M
	Gross Profit
173.14M	176.99M	163.84M	106.65M	74.18M	39.80M
	EBIT
188.00K	1.11M	3.92M	4.73M	-1.46M	―
	EBITDA
61.52M	57.04M	44.07M	28.05M	13.21M	14.35M
	Net Income Common Stockholders
-7.26M	-6.76M	-2.78M	4.84M	-6.17M	―
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
15.45M	16.17M	17.21M	8.52M	34.61M	21.88M
	Total Assets
242.82M	247.25M	247.41M	132.21M	108.57M	53.95M
	Total Debt
100.72M	99.80M	97.96M	10.93M	27.05M	17.17M
	Net Debt
85.27M	83.63M	80.75M	2.41M	-7.56M	―
	Total Liabilities
136.50M	140.06M	136.29M	52.67M	49.95M	32.81M
	Stockholders Equity
106.31M	107.19M	111.11M	79.55M	58.62M	21.14M
Cash Flow		Free Cash Flow
20.52M	25.07M	33.75M	17.38M	13.65M	―
	Operating Cash Flow
32.95M	35.38M	40.54M	26.34M	18.69M	―
	Investing Cash Flow
-12.33M	-10.31M	-82.83M	-42.49M	-17.84M	―
	Financing Cash Flow
-22.38M	-26.15M	50.87M	-9.85M	3.91M	10.48M

Quipt Home Medical Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.90
• 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:QIPT, the sentiment is Negative. The current price of 2.9 is below the 20-day moving average (MA) of 3.34, below the 50-day MA of 3.77, and below the 200-day MA of 3.96, indicating a bearish trend. The MACD of -0.15 indicates Negative momentum. The RSI at 37.16 is Neutral, neither overbought nor oversold. The STOCH value of 38.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:QIPT.

Quipt Home Medical Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXE	74 Outperform	C$1.09B	14.67	70.86%	3.68%	12.36%	123.26%
SIA	63 Neutral	C$1.54B	33.29	8.99%	5.68%	13.72%	429.22%
QIPT	57 Neutral	C$124.96M	―	-6.08%	―	2.00%	-38.48%
Sector *	48 Neutral	$6.36B	1.09	-49.92%	2.63%	17.17%	0.95%

Quipt Home Medical Corporate Events

Quipt Home Medical Reports Q1 2025 Financial Results with Improved EBITDA

Quipt Home Medical Corp. reported its financial results for the first quarter of fiscal year 2025, showing a slight decrease in revenue to $61.4 million and a reduced net loss of $1.1 million. Despite the challenges posed by the cessation of the Medicare 75/25 blended rate and other setbacks, such as the non-renewal of a disposable supply contract, the company maintained strong cash flow and recurring revenue, along with a sequential improvement in adjusted EBITDA, which increased by 4.5% from the previous quarter.

Quipt Home Medical Reaffirms Commitment Amid Proxy Challenge

Quipt Home Medical Corp. has affirmed its commitment to enhancing shareholder value and maintaining strong corporate governance in response to Kanen Wealth Management’s proxy solicitation notice. The company emphasizes its strategic growth plan and dedication to corporate governance to ensure long-term success and shareholder value. Despite the opposition from Kanen Wealth Management, Quipt Home Medical remains focused on its strategic objectives, maintaining open communication with shareholders and evaluating opportunities to enhance performance.

Quipt Home Medical To Release Q1 2025 Financial Results

Quipt Home Medical Corp. is set to announce its fiscal first quarter 2025 financial results on February 10, 2025. This announcement reflects the company’s ongoing commitment to transparency with its stakeholders and may provide insights into its operational performance and strategic direction in the competitive healthcare market.