LifeStance Health Group, Inc. (NASDAQ: LFST)

Sector: Healthcare Industry: Medical Care Facilities CIK: 0001845257
Market Cap 2.15 Bn
P/B 1.44
P/E -236.33
P/S 1.58
ROIC (Qtr) 0.09
Div Yield % 0.00
Rev 1y % (Qtr) 16.34
Total Debt (Qtr) 460.95 Mn
Debt/Equity (Qtr) 0.31

About

LifeStance Health Group, Inc. (LFST) is a prominent player in the mental healthcare industry within the United States. The company operates a national platform that offers a comprehensive range of mental health services, including psychiatric evaluations, therapy, and counseling, to individuals of all ages. LifeStance Health Group's primary business activities involve providing mental health services to patients through its network of clinics and online platforms. The company generates revenue on a per-visit basis, with the majority of its revenue...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 203.90M provide 4.30x coverage of short-term debt 47.38M, demonstrating strong liquidity position and minimal refinancing risk.
  • Robust free cash flow of 119.39M exceeds capital expenditure of 31.52M by 3.79x, indicating strong organic growth funding capability.
  • Robust tangible asset base of 674.87M provides 5.12x coverage of working capital 131.82M, indicating strong operational backing.
  • Operating cash flow of 150.91M fully covers other non-current liabilities 14.09M by 10.71x, showing strong long-term stability.
  • Operating cash flow of 150.91M provides solid 0.66x coverage of current liabilities 228.56M, showing strong operational health.

Bear case

  • Operating cash flow of 150.91M barely covers its investment activities of (31.52M), with a coverage ratio of -4.79, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • The company's operating cash flow of 150.91M shows concerning coverage of stock compensation expenses of 74.14M, with a 2.04 ratio indicating potential earnings quality issues.
  • Operating cash flow of 150.91M provides minimal -58.06x coverage of tax expenses of (2.60M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Free cash flow of 119.39M represents just -17.70x of debt issuance (6.75M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating earnings of 6.47M show weak coverage of depreciation charges of 97.33M, with a 0.07 ratio indicating high capital intensity and potential reinvestment needs.

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 1.13 1.26
EV to Cash from Ops. EV/CFO 16.04 12.78
EV to Debt EV to Debt 5.25 12.10
EV to EBIT EV/EBIT 374.20 10.74
EV to EBITDA EV/EBITDA 23.17 16.04
EV to Free Cash Flow [EV/FCF] EV/FCF 20.27 18.02
EV to Market Cap EV to Market Cap 1.13 432.64
EV to Revenue EV/Rev 1.77 2.77
Price to Book Value [P/B] P/B 1.44 -1.92
Price to Earnings [P/E] P/E -235.33 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) 0.36 -97.94
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -18.13 -114.65
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 98.71 65.22
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.97
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 107.14 -46.98
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 98.02 75.97
EBIT Growth (1y) % EBIT 1y % (Qtr) 110.04 -61.19
EBT Growth (1y) % EBT 1y % (Qtr) 86.54 -115.48
EPS Growth (1y) % EPS 1y % (Qtr) 88.46 -24.32
FCF Growth (1y) % FCF 1y % (Qtr) 240.54 309.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 18.06 17.88
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.64 1.04
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.04
Cash Ratio Cash Ratio (Qtr) 0.89 0.39
Current Ratio Curr Ratio (Qtr) 1.58 1.39
Debt to Equity Ratio Debt/Equity (Qtr) 0.31 -13.19
Interest Cover Ratio Int Coverage (Qtr) 0.36 -97.94
Times Interest Earned Times Interest Earned (Qtr) 0.36 -97.94
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 7.60 -95.81
EBIT Margin % EBIT Margin % (Qtr) 0.47 -94.97
EBT Margin % EBT Margin % (Qtr) -0.86 -105.60
Gross Margin % Gross Margin % (Qtr) 32.50 23.31
Net Profit Margin % Net Margin % (Qtr) -0.70 -106.14