Nutex Health, Inc. (NASDAQ: NUTX)

Sector: Healthcare Industry: Medical Care Facilities CIK: 0001479681
Market Cap 956.01 Mn
P/B 3.01
P/E 7.93
P/S 0.97
ROIC (Qtr) 38.37
Div Yield % 0.00
Rev 1y % (Qtr) 239.87
Total Debt (Qtr) 358.60 Mn
Debt/Equity (Qtr) 1.13

About

Nutex Health, Inc., trading under the symbol NUTX, is a company that operates in the healthcare industry. Its main business activities involve the development and operation of innovative micro-hospitals, offering a patient-centric care model, and providing a differentiated provider engagement and partnership strategy. The company has a presence in eight states, with its operations divided into a hospital division and a population health management division. The hospital division is responsible for implementing and operating micro-hospitals, specialty...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 177.79M provides robust 0.50x coverage of total debt 358.60M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 166.05M provide 5.10x coverage of short-term debt 32.53M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 929.04M provides 2.59x coverage of total debt 358.60M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 176.28M exceeds capital expenditure of 1.51M by 116.57x, indicating strong organic growth funding capability.
  • Strong operating cash flow of 177.79M provides 3.82x coverage of SG&A expenses 46.58M, showing efficient operational cost management.

Bear case

  • Operating cash flow of 177.79M barely covers its investment activities of (3.51M), with a coverage ratio of -50.71, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 166.05M provide limited coverage of acquisition spending of (1.99M), which is -83.27x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of 177.79M shows concerning coverage of stock compensation expenses of 134.21M, with a 1.32 ratio indicating potential earnings quality issues.
  • High receivables of 394.76M relative to inventory of 3.16M (125 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Free cash flow of 176.28M represents just -12.18x of debt issuance (14.47M), 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 1.25 1.26
EV to Cash from Ops. EV/CFO 6.78 12.78
EV to Debt EV to Debt 3.36 12.10
EV to EBIT EV/EBIT 5.82 10.74
EV to EBITDA EV/EBITDA 3.18 16.04
EV to Free Cash Flow [EV/FCF] EV/FCF 6.84 18.02
EV to Market Cap EV to Market Cap 1.27 432.64
EV to Revenue EV/Rev 1.23 2.77
Price to Book Value [P/B] P/B 3.00 -1.92
Price to Earnings [P/E] P/E 7.89 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) 9.29 -97.94
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -39.59 -114.65
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 253.98 65.22
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.97
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 756.39 -46.98
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 4,223.05 75.97
EBIT Growth (1y) % EBIT 1y % (Qtr) 1,181.89 -61.19
EBT Growth (1y) % EBT 1y % (Qtr) 583.12 -115.48
EPS Growth (1y) % EPS 1y % (Qtr) 334.77 -24.32
FCF Growth (1y) % FCF 1y % (Qtr) 770.96 309.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 695.55 17.88
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.02 1.04
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.04
Cash Ratio Cash Ratio (Qtr) 0.90 0.39
Current Ratio Curr Ratio (Qtr) 3.20 1.39
Debt to Equity Ratio Debt/Equity (Qtr) 1.13 -13.19
Interest Cover Ratio Int Coverage (Qtr) 9.29 -97.94
Times Interest Earned Times Interest Earned (Qtr) 9.29 -97.94
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 23.20 -95.81
EBIT Margin % EBIT Margin % (Qtr) 21.11 -94.97
EBT Margin % EBT Margin % (Qtr) 18.84 -105.60
Gross Margin % Gross Margin % (Qtr) 55.00 23.31
Net Profit Margin % Net Margin % (Qtr) 12.30 -106.14