Quipt Home Medical (QIPT) AI Stock Analysis

• Market Cap: C$125.99M
• Dividend Yield: N/A
• Average Volume (3M): 53.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.73
• Revenue Growth: 0.69%
• EPS Growth: -95.27%
• Country: CA
• Employees: 1,200
• Sector: Healthcare
• Sector Strength: 55
• Industry: Medical - Devices
• EPS (TTM): -0.10
• Shares Outstanding: 43,443,974
• 10 Day Avg. Volume: 37,723
• 30 Day Avg. Volume: 53,057
• PEG Ratio: -0.17
• Price to Book (P/B): 1.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.19
• Enterprise Value/Market Cap: 0.64
• Enterprise Value/Revenue: 0.08
• Enterprise Value/Gross Profit: 0.46
• Enterprise Value/Ebitda: 0.31
• 1Y Price Target: C$4.83
• Price Target Upside: 66.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 64 Neutral
• Price Target: C$3.00 ▲(3.45%Upside)

Quipt Home Medical's overall stock score is influenced primarily by its strong cash flow management and revenue growth, with financial performance being the most significant factor. However, technical indicators suggest bearish sentiment, and valuation remains challenging due to net profitability issues. The mixed sentiment from the earnings call due to revenue and customer base declines also contributes to the score.

Positive Factors

Acquisition Offer

Forager is still interested in pursuing the acquisition at the same price as the original offer, which is seen as a solid outcome for QIPT shareholders.

Financial Resilience

Quipt is positioned to ride out headwinds with $17 million in cash and available capital on its credit facility and delayed-draw term loan facility totaling $30.7 million.

Shareholder Value

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

Negative Factors

Growth Headwinds

Quipt is currently enduring several revenue headwinds that have stunted organic growth over the last year.

Healthcare Sector Challenges

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.

Investor Challenges

Quipt's sub $100 million market cap and trading volume present challenges to attracting new institutional investors.

Quipt Home Medical Business Overview & Revenue Model

Company Description

Quipt 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 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 demonstrates strong revenue growth and robust cash flow management, providing a stable foundation for future expansion. However, challenges in achieving net profitability and managing increasing liabilities are notable concerns, impacting its financial performance score.

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	211.68M	139.86M	102.35M	72.64M
	Gross Profit
173.14M	180.18M	153.78M	106.65M	74.18M	52.70M
	EBIT
188.00K	1.11M	3.92M	4.73M	-1.46M	876.24K
	EBITDA
61.52M	57.04M	44.07M	28.05M	13.21M	12.80M
	Net Income Common Stockholders
-7.26M	-6.76M	-2.78M	4.84M	-6.17M	-4.57M
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: Neutral
• Last Price: 2.90
• 50DMA: Positive
• 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 Neutral. The current price of 2.9 is above the 20-day moving average (MA) of 2.58, above the 50-day MA of 2.76, and below the 200-day MA of 3.57, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 52.44 is Neutral, neither overbought nor oversold. The STOCH value of 75.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	64 Neutral	C$125.99M	―	-8.34%	―	0.69%	-95.27%
ASG	62 Neutral	C$23.81M	―	-23.87%	―	18.97%	17.57%
PRN	54 Neutral	C$273.48M	―	-66.14%	―	51.21%	15.33%
Sector *	54 Neutral	$5.38B	3.31	-45.11%	3.29%	16.82%	0.04%
PINK	50 Neutral	C$21.51M	―	-163.62%	―	113.85%	11.38%
TLT	45 Neutral	C$46.40M	―	-291.48%	―	-8.63%	7.04%
VPT	44 Neutral	C$18.79M	―	207.08%	―	280.56%	-7.28%

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.