SRx Health Solutions, Inc. (NYSE: SRXH)

Sector: Healthcare Industry: Medical Care Facilities CIK: 0001471727
Market Cap 2.65 Mn
P/B 0.75
P/E -0.07
P/S -0.20
ROIC (Qtr) -10.39
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 21.03 Mn
Debt/Equity (Qtr) 5.97
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About

Better Choice Company Inc. (BTTR) is a prominent player in the pet health and wellness industry, specifically in the premium pet food sector. The company's mission is to lead the way in the industry by prioritizing innovation, integrity, and respect for pets and their owners. BTTR's primary business activities revolve around the production and distribution of high-quality pet food products. These activities are carried out in various countries, with a focus on providing superior nutrition for dogs and cats. The company's commitment to quality is...

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Investment thesis

Bull case

  • Operating cash flow of (9.90M) provides exceptional 18.33x coverage of interest expenses (540000), showing strong debt service capability.
  • Strong operating cash flow of (9.90M) provides 25.71x coverage of SG&A expenses (385000), showing efficient operational cost management.
  • Robust free cash flow of (9.88M) exceeds capital expenditure of (12000) by 823.75x, indicating strong organic growth funding capability.
  • Free cash flow of (9.88M) provides exceptional 18.31x coverage of interest expense (540000), showing strong debt service ability.
  • Tangible assets of 27.05M provide robust 21.57x coverage of other current liabilities 1.25M, indicating strong asset backing.

Bear case

  • The company's operating cash flow of (9.90M) shows concerning coverage of stock compensation expenses of 4.10M, with a -2.42 ratio indicating potential earnings quality issues.
  • High receivables of 3.06M relative to inventory of 1.32M (2.32 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating earnings of (41.43M) show weak coverage of depreciation charges of 15000, with a -2762.07 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of (9.88M) represents just -6.30x of debt issuance 1.57M, suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Long-term investments of 8M represent a high 109.53x of fixed assets 73000, indicating potential overexposure to financial assets versus operational capabilities.

Geographical Breakdown of Revenue (2025)

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. 126.41 Bn 18.63 1.67 48.35 Bn
2 UHS Universal Health Services Inc 23.26 Bn 34.22 2.61 5.11 Bn
3 THC Tenet Healthcare Corp 21.11 Bn 15.01 0.99 13.17 Bn
4 FMS Fresenius Medical Care AG 14.42 Bn 17.06 0.62 14.98 Bn
5 EHC Encompass Health Corp 13.38 Bn 30.01 2.91 2.66 Bn
6 ENSG Ensign Group, Inc 12.18 Bn 35.41 2.41 2.21 Bn
7 DVA Davita Inc. 11.17 Bn 14.95 0.82 12.87 Bn
8 CHE Chemed Corp 8.11 Bn 81.70 5.57 0.14 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.21 1.24
EV to Cash from Ops. EV/CFO -0.59 15.08
EV to Debt EV to Debt 0.28 11.01
EV to EBIT EV/EBIT -0.14 15.96
EV to EBITDA EV/EBITDA -3.84 11.44
EV to Free Cash Flow [EV/FCF] EV/FCF -0.59 21.76
EV to Market Cap EV to Market Cap 2.19 619.57
EV to Revenue EV/Rev -0.44 2.71
Price to Book Value [P/B] P/B 0.75 -6.00
Price to Earnings [P/E] P/E -0.07 12.61
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 0.14
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -13.46
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) 76.72 -94.29
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -98.90 -116.62
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 325.96 46.03
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.98
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 7.38 -42.57
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -116.27 91.55
EBIT Growth (1y) % EBIT 1y % (Qtr) 2.37 -56.79
EBT Growth (1y) % EBT 1y % (Qtr) -0.54 -111.80
EPS Growth (1y) % EPS 1y % (Qtr) 63.43 -19.28
FCF Growth (1y) % FCF 1y % (Qtr) -11,206.74 188.37
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 83.21 20.14
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) -0.49 1.02
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.04
Cash Ratio Cash Ratio (Qtr) 0.56 0.40
Current Ratio Curr Ratio (Qtr) 0.80 1.36
Debt to Equity Ratio Debt/Equity (Qtr) 5.97 -13.23
Interest Cover Ratio Int Coverage (Qtr) 76.72 -94.29
Times Interest Earned Times Interest Earned (Qtr) 76.72 -94.29
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 315.30 -75.46
EBIT Margin % EBIT Margin % (Qtr) 315.42 -74.60
EBT Margin % EBT Margin % (Qtr) 311.31 -85.12
Gross Margin % Gross Margin % (Qtr) 14.60 23.17
Net Profit Margin % Net Margin % (Qtr) 304.30 -85.79