Healthcare Triangle, Inc. (NASDAQ: HCTI)

Sector: Healthcare Industry: Health Information Services CIK: 0001839285
Market Cap 29,624.57
P/B 0.00
P/E 0.00
P/S 0.00
ROIC (Qtr) -55.95
Div Yield % 0.00
Rev 1y % (Qtr) 44.59
Total Debt (Qtr) 1.53 Mn
Debt/Equity (Qtr) 0.17

About

Healthcare Triangle, Inc. (HCTI) is a company that operates in the healthcare information technology industry. It is known for its innovative solutions and services that aim to transform the healthcare sector, with a particular focus on cloud services, data science, and professional and managed services for Electronic Health Record (EHR), healthcare, and life sciences. HCTI's main business activities involve the provision of technology platforms and services that enable healthcare organizations to manage their cloud infrastructure, automate data...

Read more

Price action

Investment thesis

Bull case

  • Strong tangible asset base of 7.95M provides 5.19x coverage of total debt 1.53M, indicating robust asset backing and low credit risk.
  • Operating cash flow of (10.50M) provides strong 35.12x coverage of operating expenses (299000), showing operational efficiency.
  • Tangible assets of 7.95M provide robust 7.40x coverage of other current liabilities 1.07M, indicating strong asset backing.
  • Strong cash position of 1.63M provides 1.52x coverage of other current liabilities 1.07M, indicating excellent liquidity.
  • Free cash flow of (10.51M) provides solid 35.14x coverage of operating expenses (299000), showing operational efficiency.

Bear case

  • Investment activities of (1.29M) provide weak support for R&D spending of 178000, which is -7.24x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (10.50M) shows concerning coverage of stock compensation expenses of 520000, with a -20.19 ratio indicating potential earnings quality issues.
  • Free cash flow of (10.51M) provides weak coverage of capital expenditures of 6000, with a -1751 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (10.50M) provides minimal -2625x coverage of tax expenses of 4000, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • High financing cash flow of 13.39M relative to working capital of 4.03M, which is 3.32x suggests concerning dependence on external funding for operational needs.

Product and Service Breakdown of Revenue (2024)

Product and Service 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 -0.20 2.77
EV to Cash from Ops. EV/CFO 0.27 -10.86
EV to Debt EV to Debt -1.82 161.93
EV to EBIT EV/EBIT 0.56 -106.48
EV to EBITDA EV/EBITDA 0.47 4.22
EV to Free Cash Flow [EV/FCF] EV/FCF 0.26 7.46
EV to Market Cap EV to Market Cap -93.95 -14.93
EV to Revenue EV/Rev -0.22 1.76
Price to Book Value [P/B] P/B 0.00 10.57
Price to Earnings [P/E] P/E 0.00 147.14
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -0.85 -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) -3.79 -584.72
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -20.00 -24.09
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 5,717.86 172.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -1.05
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 11.21 -17.73
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -9.29 39.85
EBIT Growth (1y) % EBIT 1y % (Qtr) 11.13 -38.83
EBT Growth (1y) % EBT 1y % (Qtr) -0.45 -4.52
EPS Growth (1y) % EPS 1y % (Qtr) 70.28 2.60
FCF Growth (1y) % FCF 1y % (Qtr) -3,342.59 -48.57
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -59.25 5.49
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.94 0.66
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 0.42 1.87
Current Ratio Curr Ratio (Qtr) 2.03 3.27
Debt to Equity Ratio Debt/Equity (Qtr) 0.17 -0.43
Interest Cover Ratio Int Coverage (Qtr) -3.79 -584.72
Times Interest Earned Times Interest Earned (Qtr) -3.79 -584.72
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -39.20 -435.80
EBIT Margin % EBIT Margin % (Qtr) -38.63 -464.70
EBT Margin % EBT Margin % (Qtr) -48.82 -461.74
Gross Margin % Gross Margin % (Qtr) 13.10 44.03
Net Profit Margin % Net Margin % (Qtr) -48.90 -468.01