Vitalhub (VHI) AI Stock Analysis

• Market Cap: C$517.04M
• Dividend Yield: N/A
• Average Volume (3M): 148.97K
• Price to Earnings (P/E): 159.7
• Beta (1Y): 0.57
• Revenue Growth: 59.34%
• EPS Growth: -23.48%
• Country: CA
• Employees: 500
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -0.01
• Shares Outstanding: 61,332,874
• 10 Day Avg. Volume: 164,389
• 30 Day Avg. Volume: 148,972
• PEG Ratio: -4.74
• Price to Book (P/B): 3.83
• Price to Sales (P/S): 8.08
• P/FCF Ratio: 38.93
• 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$14.25
• Price Target Upside: 69.04% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: C$9.00 ▲(6.76% Upside)

Vitalhub's strong financial performance and positive earnings call sentiment are significant strengths, driving the overall score. However, technical indicators suggest potential bearish momentum, and the high P/E ratio indicates overvaluation, which are notable risks.

Positive Factors

Recurring revenue & ARR growth

High ARR of $93.7M and 74% recurring revenue provide durable revenue visibility and predictable cash flows. Organic ARR growth plus acquisition-driven expansion supports long-term customer retention, smoother renewal economics, and better planning for R&D and go-to-market investments.

High gross margins

Sustained ~81% gross margins reflect scalable software-centric delivery and low incremental cost to serve. High gross margins enable reinvestment into product and services, support profitability as ARR grows, and provide a structural cushion against pricing or cost pressures over the medium term.

Strong liquidity & low leverage

Large cash balance and minimal leverage give the company strategic flexibility to fund acquisitions, integration, and product development without refinancing risk. A strong equity base and low debt reduce financial distress risk and support multi-year M&A or organic investment plans.

Negative Factors

Weak cash conversion

Low operating cash conversion (OCF/net income ~0.19) and declining FCF growth suggest earnings are not translating efficiently into cash, possibly due to working capital or billing timing. This constrains internal funding capacity and raises reliance on cash reserves for investments and integrations.

Compressed operating margins

Material decline in adjusted EBITDA margin indicates rising integration, sales, or SG&A costs versus revenue mix shifts. Lower EBIT margin versus high gross margin signals operational leverage shortfall; sustained compression would limit free cash generation and reinvestment capacity over the medium term.

Product & market headwinds

Structural challenges in key markets and products—NHS procurement shifts, underperforming Strata requiring sales changes, and telehealth competition from established platforms—threaten revenue sustainability in those segments and may require prolonged investment to regain growth trajectories.

Vitalhub Business Overview & Revenue Model

Company Description

Vitalhub Corp., together with its subsidiaries, provides technology solutions for health and human service providers in Canada, the United States, the United Kingdom, Australia, Western Asia, and internationally. Its solutions include electronic healthcare record, case management, care coordination, patient flow and operational visibility, and mobile apps. The company was incorporated in 2010 and is based in Toronto, Canada.

How the Company Makes Money

Vitalhub generates revenue primarily through the sale of its software solutions and services to healthcare providers, including hospitals, clinics, and other healthcare institutions. The company employs a subscription-based model for many of its products, allowing clients to pay for ongoing access and support. Additionally, Vitalhub may earn revenue from consulting services, implementation support, and training programs that help healthcare organizations effectively integrate and utilize its software. Key partnerships with healthcare organizations and technology providers enhance its market reach and foster collaboration, contributing to its overall revenue growth.

Vitalhub Financial Statement Overview

Summary

Vitalhub shows strong revenue growth and solid gross profit margins, indicating a healthy business model. The balance sheet reflects low leverage and a solid equity base, enhancing financial stability. However, cash flow metrics indicate areas for improvement, particularly in cash generation relative to earnings.

Income Statement

Vitalhub demonstrates strong revenue growth with an 18.8% increase in TTM, supported by a solid gross profit margin of 80.89%. The net profit margin has improved to 5.99%, indicating enhanced profitability. However, the EBIT margin of 7.65% suggests room for operational efficiency improvements.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.086, reflecting prudent financial leverage. The return on equity stands at 3.12%, showing moderate returns on shareholder investments. The equity ratio of 70.76% indicates a strong equity base relative to total assets, contributing to financial stability.

Cash Flow

Operating cash flow remains positive, but the free cash flow growth rate has declined by 9.37% in TTM. The operating cash flow to net income ratio of 0.19 suggests a need for improved cash generation relative to earnings. However, the free cash flow to net income ratio of 0.95 indicates efficient cash conversion from profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	98.17M	68.59M	52.51M	39.97M	24.66M	13.79M
Gross Profit	79.43M	55.49M	42.81M	32.94M	19.43M	10.29M
EBITDA	14.97M	11.90M	10.38M	5.25M	1.12M	148.12K
Net Income	2.83M	3.00M	4.55M	1.21M	-1.95M	-2.17M
Balance Sheet
Total Assets	370.13M	207.19M	118.78M	106.19M	72.77M	64.08M
Cash, Cash Equivalents and Short-Term Investments	123.68M	56.57M	33.48M	17.45M	16.39M	23.39M
Total Debt	1.60M	608.76K	541.09K	882.20K	792.51K	987.89K
Total Liabilities	108.24M	62.33M	36.88M	30.79M	17.95M	13.77M
Stockholders Equity	261.89M	144.86M	81.91M	75.40M	54.82M	50.31M
Cash Flow
Free Cash Flow	12.18M	14.24M	20.18M	5.83M	-309.58K	294.35K
Operating Cash Flow	12.92M	15.13M	20.47M	6.12M	-49.97K	405.14K
Investing Cash Flow	-73.73M	-31.39M	-4.15M	-21.84M	-10.06M	-9.37M
Financing Cash Flow	104.64M	39.09M	-287.89K	16.40M	3.17M	30.37M

Vitalhub Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.43
• 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:VHI, the sentiment is Negative. The current price of 8.43 is below the 20-day moving average (MA) of 8.83, below the 50-day MA of 9.02, and below the 200-day MA of 10.74, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 37.68 is Neutral, neither overbought nor oversold. The STOCH value of 46.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:VHI.

Vitalhub Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VHI	68 Neutral	C$517.04M	159.66	1.45%	―	59.34%	-23.48%
KSI	55 Neutral	C$430.71M	-333.33	-2.45%	―	33.27%	86.18%
CHS	53 Neutral	C$14.18M	-3.73	―	―	16.04%	-455.38%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ADK	50 Neutral	C$35.52M	-6.18	―	―	-48.53%	-9.66%
NDAT	46 Neutral	C$1.03M	-3.38	-40.64%	―	-100.00%	65.85%
UDOC	44 Neutral	C$12.09M	-2.43	―	―	―	48.94%

Vitalhub Corporate Events

VitalHub Achieves Robust Financial Growth in Q3 2025

VitalHub reported significant financial growth in the third quarter of 2025, with annual recurring revenue up 75% year-over-year to $93.7 million and total revenue increasing by 94% to $32.0 million. The company’s adjusted EBITDA rose by 58% to $7.2 million, reflecting successful project deliveries and positive recurring revenue trends. VitalHub is focusing on optimizing its commercial and operational alignment following recent acquisitions and continues to integrate these acquisitions to enhance margins and pursue new opportunities.

The most recent analyst rating on (TSE:VHI) stock is a Hold with a C$11.50 price target. To see the full list of analyst forecasts on Vitalhub stock, see the TSE:VHI Stock Forecast page.