Guardian Pharmacy Services, Inc. (NYSE: GRDN)

Sector: Healthcare Industry: Medical Care Facilities CIK: 0001802255
Market Cap 1.80 Bn
P/B 9.79
P/E 44.72
P/S 1.30
ROIC (Qtr) 16.21
Div Yield % 0.00
Rev 1y % (Qtr) 20.05
Total Debt (Qtr) 34.08 Mn
Debt/Equity (Qtr) 0.19

About

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 87.99M provides robust 2.58x coverage of total debt 34.08M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 36.49M provide 5.43x coverage of short-term debt 6.72M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 291.55M provides 8.55x coverage of total debt 34.08M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 87.99M provides exceptional 95.33x coverage of interest expenses 923000, showing strong debt service capability.
  • Robust free cash flow of 68.17M exceeds capital expenditure of 19.82M by 3.44x, indicating strong organic growth funding capability.

Bear case

  • Operating cash flow of 87.99M barely covers its investment activities of (34.14M), with a coverage ratio of -2.58, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 36.49M provide limited coverage of acquisition spending of (15.17M), which is -2.41x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • High receivables of 106.19M relative to inventory of 47.86M (2.22 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating earnings of 60.17M show weak coverage of depreciation charges of 21.75M, with a 2.77 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 68.17M represents just -1.38x of debt issuance (49.31M), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Peer comparison

Companies in the Medical Care Facilities
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 HCA HCA Healthcare, Inc. 114.88 Bn 18.11 1.54 46.35 Bn
2 THC Tenet Healthcare Corp 18.07 Bn 13.34 0.87 13.19 Bn
3 UHS Universal Health Services Inc 14.64 Bn 10.65 0.86 5.11 Bn
4 FMS Fresenius Medical Care AG 14.10 Bn 16.69 0.61 14.98 Bn
5 EHC Encompass Health Corp 12.55 Bn 19.95 2.17 2.66 Bn
6 ENSG Ensign Group, Inc 10.08 Bn 30.72 2.09 2.16 Bn
7 DVA Davita Inc. 8.90 Bn 11.53 0.67 12.78 Bn
8 CHE Chemed Corp 6.38 Bn 22.87 2.52 0.14 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 4.71 1.26
EV to Cash from Ops. EV/CFO 20.89 12.78
EV to Debt EV to Debt 53.92 12.10
EV to EBIT EV/EBIT 30.54 10.74
EV to EBITDA EV/EBITDA 22.88 16.04
EV to Free Cash Flow [EV/FCF] EV/FCF 26.96 18.02
EV to Market Cap EV to Market Cap 1.01 432.64
EV to Revenue EV/Rev 1.32 2.77
Price to Book Value [P/B] P/B 9.92 -1.92
Price to Earnings [P/E] P/E 45.30 5.13
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.10
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -13.44
Dividend per Basic Share Div per Share (Qtr) 0.00 0.27
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 5.42
Interest Coverage Int. cover (Qtr) 65.19 -97.94
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -35.47 -114.65
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -1.97 65.22
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.97
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 134.52 -46.98
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 278.33 75.97
EBIT Growth (1y) % EBIT 1y % (Qtr) 150.90 -61.19
EBT Growth (1y) % EBT 1y % (Qtr) 148.64 -115.48
EPS Growth (1y) % EPS 1y % (Qtr) 0.00 -24.32
FCF Growth (1y) % FCF 1y % (Qtr) 91.78 309.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 18.32 17.88
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 3.56 1.04
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.04
Cash Ratio Cash Ratio (Qtr) 0.23 0.39
Current Ratio Curr Ratio (Qtr) 1.22 1.39
Debt to Equity Ratio Debt/Equity (Qtr) 0.19 -13.19
Interest Cover Ratio Int Coverage (Qtr) 65.19 -97.94
Times Interest Earned Times Interest Earned (Qtr) 65.19 -97.94
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 5.90 -95.81
EBIT Margin % EBIT Margin % (Qtr) 4.33 -94.97
EBT Margin % EBT Margin % (Qtr) 4.26 -105.60
Gross Margin % Gross Margin % (Qtr) 19.70 23.31
Net Profit Margin % Net Margin % (Qtr) 2.90 -106.14