Quipt Home Medical Corp. (NASDAQ: QIPT)

Sector: Healthcare Industry: Medical Distribution CIK: 0001540013
Market Cap 166.54 Mn
P/B 1.47
P/E -15.61
P/S 0.63
ROIC (Qtr) -1.45
Div Yield % 0.00
Rev 1y % (Qtr) 31.96
Total Debt (Qtr) 114.98 Mn
Debt/Equity (Qtr) 1.02
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About

Investment thesis

Bull case

  • Operating cash flow of 37.33M provides exceptional 81.16x coverage of minority interest expenses 460000, showing strong core operations.
  • Tangible assets of 143.21M provide exceptional 32.33x coverage of deferred revenue 4.43M, showing strong service capability backing.
  • Robust free cash flow of 27.95M exceeds capital expenditure of 9.39M by 2.98x, indicating strong organic growth funding capability.
  • Operating cash flow of 37.33M provides strong 8.43x coverage of deferred revenue 4.43M, indicating service delivery capability.
  • Cash position of 10.54M provides exceptional 22.92x coverage of minority interest expenses 460000, indicating strong liquidity.

Bear case

  • Operating cash flow of 37.33M barely covers its investment activities of (31.25M), with a coverage ratio of -1.19, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 10.54M provide limited coverage of acquisition spending of (21.82M), which is -0.48x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating earnings of (3.63M) show weak coverage of depreciation charges of 53.81M, with a -0.07 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 27.95M represents just -2.31x of debt issuance (12.12M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • High depreciation of 53.81M relative to operating cash flow of 37.33M, which is 1.44x suggests significant maintenance capital requirements affecting free cash flow.

Peer comparison

Companies in the Medical Distribution
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MCK Mckesson Corp 117.90 Bn 27.17 0.30 8.62 Bn
2 CAH Cardinal Health Inc 80.96 Bn 103.48 0.82 9.03 Bn
3 COR Cencora, Inc. 79.51 Bn 93.02 0.52 7.92 Bn
4 HSIC Henry Schein Inc 9.46 Bn 24.20 0.73 3.44 Bn
5 AHG Akso Health Group 0.37 Bn -2.71 24.79 0.00 Bn
6 EDAP Edap Tms Sa 0.17 Bn -7.47 2.30 0.01 Bn
7 QIPT Quipt Home Medical Corp. 0.17 Bn -15.61 0.63 0.11 Bn
8 EMPG Empro Group Inc. 0.12 Bn 157.82 21.62 -

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.97 1.06
EV to Cash from Ops. EV/CFO 7.30 13.08
EV to Debt EV to Debt 2.37 282.28
EV to EBIT EV/EBIT -75.09 6.31
EV to EBITDA EV/EBITDA 5.39 12.22
EV to Free Cash Flow [EV/FCF] EV/FCF 9.75 15.66
EV to Market Cap EV to Market Cap 1.64 1.21
EV to Revenue EV/Rev 1.03 1.87
Price to Book Value [P/B] P/B 1.47 11.46
Price to Earnings [P/E] P/E -15.61 34.37
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 2.22
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 5.88
Dividend per Basic Share Div per Share (Qtr) 0.00 0.67
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.23
Interest Coverage Int. cover (Qtr) -0.53 60.87
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 22.92 -12,260.13
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -31.76 27.05
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 2.21
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -664.22 -177.28
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -0.75 368.76
EBIT Growth (1y) % EBIT 1y % (Qtr) -644.74 -206.06
EBT Growth (1y) % EBT 1y % (Qtr) -62.00 -173.08
EPS Growth (1y) % EPS 1y % (Qtr) -43.75 -21.54
FCF Growth (1y) % FCF 1y % (Qtr) 27.63 -218.00
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 4.47 15.84
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.94 1.93
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.06
Cash Ratio Cash Ratio (Qtr) 0.14 0.22
Current Ratio Curr Ratio (Qtr) 1.04 1.54
Debt to Equity Ratio Debt/Equity (Qtr) 1.02 -0.33
Interest Cover Ratio Int Coverage (Qtr) -0.53 60.87
Times Interest Earned Times Interest Earned (Qtr) -0.53 60.87
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 18.90 -94.80
EBIT Margin % EBIT Margin % (Qtr) -1.37 -102.39
EBT Margin % EBT Margin % (Qtr) -3.94 -105.05
Gross Margin % Gross Margin % (Qtr) 20.80 23.37
Net Profit Margin % Net Margin % (Qtr) -4.00 -86.72