CareCloud, Inc. (NASDAQ: CCLD)

Sector: Healthcare Industry: Health Information Services CIK: 0001582982
Market Cap 174.26 Mn
P/B 3.01
P/E 73.25
P/S 1.52
ROIC (Qtr) 18.15
Div Yield % 0.00
Rev 1y % (Qtr) 8.83
Total Debt (Qtr) 9.67 Mn
Debt/Equity (Qtr) 0.17

About

CareCloud, Inc., trading under the symbol CCLD, is a prominent player in the healthcare industry, specializing in technology-enabled services and solutions that revolutionize the healthcare revenue cycle management process. With a comprehensive suite of proprietary cloud-based solutions, CareCloud supports a wide range of healthcare providers, from small practices to large medical groups, hospitals, and health systems, in enhancing their financial and operational performance, streamlining clinical workflows, and improving patient care. At the heart...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 25.11M provides robust 2.60x coverage of total debt 9.67M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 5.07M provide 4.05x coverage of short-term debt 1.25M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 25.11M provides strong 40.97x coverage of stock compensation 613000, indicating sustainable incentive practices.
  • Operating cash flow of 25.11M provides exceptional 73.65x coverage of interest expenses 341000, showing strong debt service capability.
  • Strong tangible asset base of 38.91M provides 4.03x coverage of total debt 9.67M, indicating robust asset backing and low credit risk.

Bear case

  • Operating cash flow of 25.11M barely covers its investment activities of (23.46M), with a coverage ratio of -1.07, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (23.46M) provide weak support for R&D spending of 4.85M, which is -4.84x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 5.07M provide limited coverage of acquisition spending of (16.04M), which is -0.32x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • High receivables of 15.32M relative to inventory of 605000 (25.32 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating earnings of 11.71M show weak coverage of depreciation charges of 16.08M, with a 0.73 ratio indicating high capital intensity and potential reinvestment needs.

Product and Service Breakdown of Revenue (2024)

Consolidation Items Breakdown of Revenue (2024)

Peer comparison

Companies in the Health Information Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TEM Tempus AI, Inc. 45.63 Bn -223.83 41.29 1.34 Bn
2 GEHC GE HealthCare Technologies Inc. 38.75 Bn 19.85 2.19 10.28 Bn
3 VEEV Veeva Systems Inc 37.30 Bn 43.36 12.11 0.09 Bn
4 DOCS Doximity, Inc. 7.81 Bn 30.87 12.57 0.01 Bn
5 BTSG BrightSpring Health Services, Inc. 7.70 Bn 59.42 0.62 2.70 Bn
6 HQY Healthequity, Inc. 7.32 Bn 38.14 5.67 1.03 Bn
7 WAY Waystar Holding Corp. 5.00 Bn 44.97 4.81 1.25 Bn
8 PRVA Privia Health Group, Inc. 2.79 Bn 153.67 1.37 0.01 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.85 2.77
EV to Cash from Ops. EV/CFO 6.66 -10.86
EV to Debt EV to Debt 17.30 161.93
EV to EBIT EV/EBIT 14.27 -106.48
EV to EBITDA EV/EBITDA 6.02 4.22
EV to Free Cash Flow [EV/FCF] EV/FCF 9.45 7.46
EV to Market Cap EV to Market Cap 0.96 -14.93
EV to Revenue EV/Rev 1.46 1.76
Price to Book Value [P/B] P/B 3.01 10.57
Price to Earnings [P/E] P/E 73.25 147.14
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.27 -8.65
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 5.00
Dividend per Basic Share Div per Share (Qtr) 0.00 0.04
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 4.57
Interest Coverage Int. cover (Qtr) 34.35 -584.72
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.17 -24.09
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 82.35 172.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -1.05
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 130.41 -17.73
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 234.90 39.85
EBIT Growth (1y) % EBIT 1y % (Qtr) 130.51 -38.83
EBT Growth (1y) % EBT 1y % (Qtr) 128.73 -4.52
EPS Growth (1y) % EPS 1y % (Qtr) 101.20 2.60
FCF Growth (1y) % FCF 1y % (Qtr) 50.99 -48.57
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 10.25 5.49
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.26 0.66
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 0.22 1.87
Current Ratio Curr Ratio (Qtr) 1.26 3.27
Debt to Equity Ratio Debt/Equity (Qtr) 0.17 -0.43
Interest Cover Ratio Int Coverage (Qtr) 34.35 -584.72
Times Interest Earned Times Interest Earned (Qtr) 34.35 -584.72
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 24.30 -435.80
EBIT Margin % EBIT Margin % (Qtr) 10.25 -464.70
EBT Margin % EBT Margin % (Qtr) 9.95 -461.74
Gross Margin % Gross Margin % (Qtr) 46.50 44.03
Net Profit Margin % Net Margin % (Qtr) 2.10 -468.01