Quipt Home Medical (QIPT) AI Stock Analysis

• Market Cap: C$130.33M
• Dividend Yield: N/A
• Average Volume (3M): 42.11K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.83
• Revenue Growth: 0.69%
• EPS Growth: -95.27%
• Country: CA
• Employees: 1,200
• Sector: Healthcare
• Sector Strength: 43
• Industry: Medical - Devices
• EPS (TTM): -0.10
• Shares Outstanding: 43,443,974
• 10 Day Avg. Volume: 99,645
• 30 Day Avg. Volume: 42,114
• PEG Ratio: 2.43
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.43
• 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$4.87
• Price Target Upside: 98.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 59 Neutral
• Price Target: C$3.00 ▲( 22.45% Upside)

Quipt Home Medical's overall score is driven by strong revenue growth and cash flow management. However, it is tempered by profitability challenges, bearish technical trends, and negative valuation metrics. The earnings call reveals strategic focus but also highlights revenue and patient base contractions.

Positive Factors

Financial Flexibility

The company looks to be positioned to ride these headwinds out, with $17 million in cash and available capital on its credit facility and delayed-draw term loan facility totaling $30.7 million.

Operational Stability

Management indicated there has been some stabilization and trends moving in the right direction.

Shareholder Value

The purchase price offered by Forager represents a 120% premium to the previous closing price, which is beneficial for shareholders.

Negative Factors

Market Sentiment

The healthcare sector's overall investor sentiment has been largely negative due to challenges such as rising medical costs, inflation, and supply chain issues, making investment in companies like Quipt more challenging.

Organic Growth Challenges

Forager Capital Management cited the company's persistent headwinds in generating organic growth as a factor reducing the likelihood of stock price appreciation.

Revenue Decline

Quipt reported a F2Q miss with revenue of $57.4M, down 6% year-over-year and 6.5% quarter-over-quarter, as the company was unable to sufficiently grow volumes to offset headwinds.

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 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.

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: 2.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 2.45 is below the 20-day moving average (MA) of 2.76, below the 50-day MA of 2.98, and below the 200-day MA of 3.68, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 43.50 is Neutral, neither overbought nor oversold. The STOCH value of 67.22 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
QIPT	59 Neutral	C$130.33M	―	-8.34%	―	0.69%	-95.27%
ASG	58 Neutral	C$24.98M	―	-23.87%	―	18.97%	17.57%
PRN	54 Neutral	C$213.98M	―	-66.14%	―	51.21%	15.33%
Sector *	53 Neutral	$5.14B	3.06	-43.57%	2.81%	16.81%	-0.12%
PINK	50 Neutral	C$38.94M	―	-163.62%	―	113.85%	11.38%
VPT	44 Neutral	C$18.77M	―	207.08%	―	280.56%	-7.28%
TLT	40 Underperform	C$42.12M	―	-214.26%	―	-3.45%	12.98%

Quipt Home Medical Corporate Events

Quipt Home Medical Reports Q2 2025 Results Amid Revenue Challenges

Quipt Home Medical reported its fiscal second quarter 2025 results, highlighting a 6% decrease in revenue compared to the previous year, primarily due to the loss of a Medicare Advantage agreement and a non-renewed disposable supply contract. Despite these challenges, the company maintained a strong adjusted EBITDA of 23.3% of revenue and launched new initiatives, including two De Novo sites and a Medicare-approved airway clearance device, to enhance its market position and drive future growth. Management remains focused on organic growth and operational efficiency, aiming to deepen partnerships with healthcare systems.

The most recent analyst rating on (TSE:QIPT) stock is a Buy with a C$9.50 price target. To see the full list of analyst forecasts on Quipt Home Medical stock, see the TSE:QIPT Stock Forecast page.

Quipt Home Medical to Release Q2 2025 Financial Results

Quipt Home Medical Corp. is set to announce its fiscal second quarter 2025 financial results on May 12, 2025. The company will host a conference call for investors the following day, led by CEO Gregory Crawford and CFO Hardik Mehta. This announcement is part of Quipt’s ongoing efforts to communicate financial performance and strategic direction to stakeholders, reflecting its commitment to transparency and growth in the home medical equipment industry.