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Vitalhub (TSE:VHI)
TSX:VHI
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Vitalhub (VHI) AI Stock Analysis

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TSE:VHI

Vitalhub

(TSX:VHI)

Rating:65Neutral
Price Target:
C$13.50
▲(10.66% Upside)
Vitalhub's strong financial performance, characterized by robust revenue growth and a solid balance sheet, is a key strength. However, the high P/E ratio indicates potential overvaluation, and technical indicators suggest limited short-term upside. The lack of earnings call data and corporate events means these factors did not influence the score.

Vitalhub (VHI) vs. iShares MSCI Canada ETF (EWC)

Vitalhub Business Overview & Revenue Model

Company DescriptionVitalhub (VHI) is a technology company specializing in developing healthcare solutions for hospitals, community health providers, and long-term care facilities. The company focuses on creating software applications that cater to electronic health records (EHR), care coordination, patient flow management, and mental health services. Through its innovative digital platforms, Vitalhub aims to improve healthcare delivery, patient outcomes, and operational efficiencies across the healthcare sector.
How the Company Makes MoneyVitalhub generates revenue primarily through the sale and licensing of its software solutions to healthcare institutions, including hospitals, mental health facilities, and long-term care centers. The company employs a subscription-based model for its cloud-based services, offering clients ongoing access to its platforms in exchange for regular payments. Additionally, Vitalhub earns income from implementation services, training, and support fees associated with its software products. Key revenue streams include licensing fees, subscription fees, and services revenue. The company may also benefit from strategic partnerships with healthcare organizations and government contracts, which can enhance its market presence and drive sales.

Vitalhub Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q3-2024)
|
% Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue growth, successful acquisitions, and a solid financial position with no debt. However, there were concerns about a slight decrease in services revenue and potential short-term impacts on margins due to recent acquisitions. Overall, the positive aspects, including the strategic acquisitions and revenue growth, outweighed the lowlights.
Q3-2024 Updates
Positive Updates
Strong Revenue Growth
Total revenue for Q3 2024 was $16.5 million, reflecting a 25% increase over the prior year period.
Increase in Recurring Revenue
Annual recurring revenue at the end of Q3 2024 was $53.5 million, up 25% from the previous year.
Successful Acquisitions
Completed acquisitions of MedCurrent and Strata Health, adding a combined $14.6 million to ARR, with Strata Health being the largest transaction in the company's history.
Cash Reserves and No Debt
As of September 30, 2024, the company reported cash on hand of $81.4 million and no debt.
High Adjusted EBITDA Margin
The adjusted EBITDA for Q3 2024 was $4.6 million, with a margin of 28%.
Negative Updates
Decrease in Services Revenue
Services, hardware, and other revenue decreased by 1% year-over-year due to slower deployment during the summer quarter.
Potential Margin Impact from Acquisitions
The integration of recent acquisitions might lead to a temporary reset in EBITDA margins over the next few quarters.
Seasonal Challenges in Services
Q3 is typically a light quarter for services due to staff and customer holidays during the summer months.
Company Guidance
During the Q3 2024 earnings call for VitalHub, the company provided guidance highlighting significant growth metrics and strategic developments. Total revenue for the quarter was reported at $16.5 million, marking a 25% increase compared to the same period last year. Recurring revenue, a key focus for the company, reached $53.5 million annually, reflecting a 25% year-over-year growth. The gross margin stood at 81%, slightly down from 82% the previous year. Net income before taxes was $2.4 million, while adjusted EBITDA was $4.6 million, leading to an impressive adjusted EBITDA margin of 28%. The company successfully closed two acquisitions post-quarter: MedCurrent, adding $2.3 million in annual recurring revenue (ARR), and Strata Health, contributing an additional $12.3 million in ARR, bringing the pro forma ARR to $68 million. With over $50 million in cash and no debt, VitalHub is well-positioned to maintain its growth trajectory while integrating these acquisitions.

Vitalhub Financial Statement Overview

Summary
Vitalhub exhibits strong revenue growth and maintains a healthy balance sheet with low leverage. While profitability margins have faced some pressure, the company remains financially stable. The decline in free cash flow growth is a concern that needs monitoring, but overall, the company is well-positioned in its industry with opportunities for improvement in profitability and cash flow management.
Income Statement
75
Positive
Vitalhub has demonstrated strong revenue growth with a 10.16% increase in TTM, indicating robust demand for its services. The gross profit margin remains high at 78.24%, showcasing efficient cost management. However, the net profit margin has slightly decreased to 3.79%, suggesting some pressure on profitability. The EBIT and EBITDA margins have also declined, indicating potential challenges in operational efficiency.
Balance Sheet
80
Positive
The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.0044, reflecting minimal leverage and financial risk. The return on equity is modest at 3.12%, indicating room for improvement in generating returns for shareholders. The equity ratio is strong, suggesting a stable financial position with a significant proportion of assets funded by equity.
Cash Flow
70
Positive
Operating cash flow remains positive, but the free cash flow has declined by 9.40% in the TTM, indicating potential challenges in cash generation. The operating cash flow to net income ratio is healthy, suggesting good cash conversion from profits. However, the decline in free cash flow growth could signal potential liquidity concerns if not addressed.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue82.63M68.59M52.51M39.97M24.66M13.79M
Gross Profit66.85M55.49M42.81M32.94M19.43M10.29M
EBITDA13.66M11.90M10.38M5.25M1.12M148.12K
Net Income4.95M3.00M4.55M1.21M-1.95M-2.17M
Balance Sheet
Total Assets277.26M207.19M118.78M106.19M72.77M64.08M
Cash, Cash Equivalents and Short-Term Investments94.01M56.57M33.48M17.45M16.39M23.39M
Total Debt15.59M608.76K541.09K882.20K792.51K987.89K
Total Liabilities94.93M62.33M36.88M30.79M17.95M13.77M
Stockholders Equity182.33M144.86M81.91M75.40M54.82M50.31M
Cash Flow
Free Cash Flow13.44M14.24M20.18M5.83M-309.58K294.35K
Operating Cash Flow14.23M15.13M20.47M6.12M-49.97K405.14K
Investing Cash Flow-38.75M-31.39M-4.15M-21.84M-10.06M-9.37M
Financing Cash Flow48.57M39.09M-287.89K16.40M3.17M30.37M

Vitalhub Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price12.20
Price Trends
50DMA
12.49
Negative
100DMA
11.53
Positive
200DMA
11.11
Positive
Market Momentum
MACD
-0.02
Positive
RSI
41.29
Neutral
STOCH
9.24
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:VHI, the sentiment is Neutral. The current price of 12.2 is below the 20-day moving average (MA) of 13.06, below the 50-day MA of 12.49, and above the 200-day MA of 11.11, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 41.29 is Neutral, neither overbought nor oversold. The STOCH value of 9.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:VHI.

Vitalhub Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
C$767.52M137.113.23%41.68%-16.15%
55
Neutral
C$8.67M-652.61%-72.12%40.30%
51
Neutral
$7.86B-0.33-41.57%2.23%23.26%-2.03%
48
Neutral
C$514.05M994.440.99%39.32%
46
Neutral
C$27.50M366.78%-47.10%-19.32%
$36.14M-202.19%
$13.32M-9999.00%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:VHI
Vitalhub
12.20
4.22
52.88%
TSE:ADK
Diagnos
0.26
-0.10
-27.78%
TSE:AIML
Aiml Resources
0.05
-0.02
-28.57%
TSE:KSI
kneat.com
5.46
0.78
16.67%
TREIF
Treatment.com International
0.49
-0.09
-15.52%
UDOCF
UniDoc Health Corp
0.19
-0.17
-47.22%

Vitalhub Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
VitalHub Announces $65 Million Public Offering
Positive
Aug 16, 2025

VitalHub Corp. has announced the filing of a prospectus supplement in connection with a ‘bought deal’ public offering to distribute over 5 million common shares, aiming to raise approximately $65 million. The offering, expected to close around August 20, 2025, is subject to regulatory approval and involves co-lead underwriters Cormark Securities Inc. and National Bank Financial Inc. The move is part of VitalHub’s strategy to strengthen its market position and expand its financial resources, potentially impacting its operations and stakeholders positively.

The most recent analyst rating on (TSE:VHI) stock is a Buy with a C$10.50 price target. To see the full list of analyst forecasts on Vitalhub stock, see the TSE:VHI Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
VitalHub Corp. Announces $65 Million Public Offering to Fuel Growth
Positive
Aug 15, 2025

VitalHub Corp. has announced a $65 million bought deal public offering, with Cormark Securities Inc. and National Bank Financial Inc. acting as co-lead underwriters. The proceeds from this offering will be used for growth initiatives, including future acquisitions and general corporate purposes, with the closing expected around August 20, 2025, pending regulatory approval. This strategic move is expected to bolster VitalHub’s market position and support its aggressive growth strategy, potentially impacting stakeholders by enhancing the company’s operational capabilities and expanding its market reach.

The most recent analyst rating on (TSE:VHI) stock is a Buy with a C$10.50 price target. To see the full list of analyst forecasts on Vitalhub stock, see the TSE:VHI Stock Forecast page.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
VitalHub Achieves Robust Financial Growth in Q2 2025
Positive
Aug 7, 2025

VitalHub reported significant financial growth in the second quarter of 2025, with annual recurring revenue up 55% year-over-year to $79.6 million and total revenue up 47% to $23.9 million. The company has successfully integrated its 2024 acquisitions, including Novari and Induction, enhancing its patient flow solutions and expanding its international presence. With over $40 million in cash and more than $90 million in ARR, VitalHub is well-positioned for continued expansion.

The most recent analyst rating on (TSE:VHI) stock is a Buy with a C$10.50 price target. To see the full list of analyst forecasts on Vitalhub stock, see the TSE:VHI Stock Forecast page.

Financial Disclosures
VitalHub to Announce Q2 2025 Financial Results and Host Conference Call
Neutral
Jul 21, 2025

VitalHub Corp. announced it will release its Q2 2025 financial results on August 7, 2025, followed by a conference call on August 8, 2025, hosted by CEO Dan Matlow and CFO Brian Goffenberg. This announcement is part of VitalHub’s ongoing efforts to engage with stakeholders and provide transparency about its financial performance, which could impact its market positioning and stakeholder confidence.

The most recent analyst rating on (TSE:VHI) stock is a Buy with a C$10.50 price target. To see the full list of analyst forecasts on Vitalhub stock, see the TSE:VHI Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
VitalHub Acquires Novari Health to Strengthen Market Position
Positive
Jul 7, 2025

VitalHub Corp. has announced the acquisition of Novari Health Inc., a Canadian healthcare software provider specializing in patient flow solutions, for $43.6 million with potential additional performance-based payments. This acquisition is expected to bolster VitalHub’s position in the Canadian market and facilitate global expansion, particularly in the UK, by leveraging Novari’s established technologies and VitalHub’s international presence, enhancing value for customers and stakeholders.

The most recent analyst rating on (TSE:VHI) stock is a Buy with a C$10.50 price target. To see the full list of analyst forecasts on Vitalhub stock, see the TSE:VHI Stock Forecast page.

Executive/Board ChangesShareholder Meetings
VitalHub Announces Successful Election of Directors and Auditor Appointment
Positive
Jun 27, 2025

VitalHub Corp. announced the results of its annual general meeting, where all director nominees were elected to the board, and MNP LLP was appointed as auditors. The meeting saw a 60.45% participation rate of the total shares issued and outstanding. These developments reinforce VitalHub’s governance structure and ensure continued oversight and financial integrity, which are crucial for its ongoing growth and market positioning.

The most recent analyst rating on (TSE:VHI) stock is a Buy with a C$10.50 price target. To see the full list of analyst forecasts on Vitalhub stock, see the TSE:VHI Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
VitalHub Completes Strategic Acquisition of Induction Healthcare
Positive
Jun 19, 2025

VitalHub has completed the acquisition of Induction Healthcare Group PLC, enhancing its product offerings with Induction’s software solutions like Zesty and Attend Anywhere. This acquisition, valued at approximately £9.7 million, is expected to complement VitalHub’s existing solutions, improve healthcare partner value, and enhance patient outcomes, thereby strengthening its position in the healthcare software industry.

The most recent analyst rating on (TSE:VHI) stock is a Buy with a C$10.50 price target. To see the full list of analyst forecasts on Vitalhub stock, see the TSE:VHI Stock Forecast page.

Private Placements and FinancingRegulatory Filings and Compliance
VitalHub Files Preliminary Base Shelf Prospectus for Future Securities Offerings
Neutral
Jun 16, 2025

VitalHub Corp. has filed a preliminary short form base shelf prospectus with securities regulatory authorities in Alberta, British Columbia, and Ontario. This filing, once finalized, will allow the company to qualify the distribution of up to $250 million in various securities over a 25-month period. Although VitalHub has no immediate plans to offer securities under this prospectus, the move positions the company to quickly capitalize on future opportunities, potentially impacting its financial strategy and market positioning.

The most recent analyst rating on (TSE:VHI) stock is a Buy with a C$10.50 price target. To see the full list of analyst forecasts on Vitalhub stock, see the TSE:VHI Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 20, 2025