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Quipt Home Medical (TSE:QIPT)
TSX:QIPT
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Quipt Home Medical
(TSX:QIPT)
60Neutral
Positive Factors
Financial Performance
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
Disappointing Results
CY'24 has been a disappointment with results revised lower, primarily due to non-renewal of the 75/25 blended rate and roll-off of Humana MA members.
Revenue Growth
The termination of a disposable supply contract is expected to cause a $2.5 million headwind in revenue growth.
Sector Challenges
Quipt has underperformed, driven by headwinds encountered by the managed care sector on higher medical cost trends and reimbursement changes.
Quipt Home Medical (QIPT) vs. S&P 500 (SPY)
Market Cap
C$124.96M
Dividend YieldN/A
Average Volume (3M)15.54K
Price to Earnings (P/E)―
Beta (1Y)1.04
Revenue Growth2.00%
EPS Growth-38.48%
CountryCA
Employees1,200
SectorHealthcare
Sector Strength69
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.21
Shares Outstanding43,091,274
10 Day Avg. Volume15,088
30 Day Avg. Volume15,543
Financial Highlights & Ratios
PEG RatioN/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 Ratio3.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$6.13Price Target Upside111.38% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Quipt Home Medical Business Overview & Revenue Model
Company DescriptionQuipt Home Medical (QIPT) is a healthcare company specializing in providing in-home health monitoring and disease management services. The company operates primarily in the United States and focuses on offering patients a comprehensive suite of respiratory therapy and durable medical equipment. Quipt Home Medical is dedicated to improving the quality of life for its patients by ensuring they have access to essential healthcare services and equipment in the comfort of their own homes.
How the Company Makes MoneyQuipt Home Medical generates revenue through the sale and rental of durable medical equipment (DME), such as respiratory devices including oxygen concentrators, ventilators, and CPAP machines. Additionally, the company earns income by providing related services such as in-home respiratory therapy, sleep apnea treatment, and patient monitoring. Revenue is primarily driven by reimbursements from Medicare, Medicaid, and private insurance companies. The company also benefits from strategic partnerships with healthcare providers and hospitals, which facilitate patient referrals and expand its customer base. Quipt Home Medical's focus on chronic respiratory conditions positions it to capture ongoing revenue streams from long-term patient relationships and recurring equipment rentals.
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.75
Positive
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.68
Positive
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.80
Positive
| 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
Negative
2.90
Price Trends
3.35
Negative
3.74
Negative
3.87
Negative
Market Momentum
-0.14
Negative
42.90
Neutral
75.27
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 2.96, below the 50-day MA of 3.35, and below the 200-day MA of 3.87, indicating a bearish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 42.90 is Neutral, neither overbought nor oversold. The STOCH value of 75.27 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 Risk Analysis
Quipt Home Medical disclosed 50 risk factors in its most recent earnings report. Quipt Home Medical reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Quipt Home Medical Peers Comparison
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Performance Comparison
TSE:QIPT
Quipt Home Medical
2.90
-2.03
-41.18%
TSE:EXE
Extendicare
13.35
6.34
90.44%
TSE:SIA
Sienna Senior Living
16.65
3.95
31.10%
Quipt Home Medical Earnings Call Summary
Earnings Call Date: Feb 10, 2025 | % Change Since: -33.03% | Next Earnings Date: May 20, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong operational efficiency, particularly in adjusted EBITDA margin improvement, and consistent demand across product categories. However, revenue declined due to various headwinds, including contract terminations and regulatory changes. Despite these challenges, the company maintained a strong liquidity position and expressed confidence in future growth opportunities.Highlights
Strong Adjusted EBITDA Margin Improvement
Achieved an adjusted EBITDA margin of 22.8% in fiscal Q1 2025, reflecting a sequential improvement and demonstrating operational efficiency.
Consistent Demand Across Major Product Categories
Reported stable demand and referral patterns across major product categories, with 221,000 unique setups and deliveries completed in the fiscal first quarter 2025.
Positive GLP-1 Impact on Sleep Business
GLP-1 medications showed no negative impact on the sleep business, with a study indicating a 10.7% increase in positive airway pressure therapy adherence among OSA patients.
Strong Liquidity Position
Maintained a conservative balance sheet with $47.9 million in liquidity and a net leverage ratio of 1.5x.
Lowlights
Revenue Decline
Revenue for fiscal Q1 2025 was $61.4 million, a 2% decrease from $62.6 million in fiscal Q1 2024, partly due to the discontinuation of the Medicare 75-25 blended rate.
Impact of Contract Termination
Non-renewal of a disposable supply contract resulted in a projected $2.5 million headwind for calendar year 2025.
Withdrawal of Medicare Advantage Members
Faced withdrawal of Medicare Advantage members due to a capitated agreement, contributing to revenue challenges.
Company Guidance
During the Quipt Home Medical Corporation's First Quarter 2025 Earnings Results Conference Call, the company provided several key financial metrics and insights into its strategic direction. For the first quarter, Quipt reported revenue of $61.4 million and an adjusted EBITDA of $14 million, reflecting a margin of 22.8%, which marked a sequential improvement. The company has expanded to 135 locations across 26 states, serving over 314,000 active patients and is focusing on respiratory care, which comprises 77% of its product mix. Quipt also highlighted its efforts in sleep apnea treatment, noting positive effects from GLP-1 medications on treatment adherence. The company is managing its balance sheet prudently, with a net leverage ratio of 1.5x, and is focused on driving organic growth, expanding market presence, and maintaining strong financial performance throughout fiscal 2025.Quipt Home Medical Corporate Events
Financial Disclosures
Quipt Home Medical Reports Q1 2025 Financial Results with Improved EBITDA
Neutral
Feb 10, 2025
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.
Shareholder MeetingsBusiness Operations and Strategy
Quipt Home Medical Reaffirms Commitment Amid Proxy Challenge
Neutral
Jan 31, 2025
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.
Financial Disclosures
Quipt Home Medical To Release Q1 2025 Financial Results
Neutral
Jan 30, 2025
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.