SRx Health Solutions, Inc. (NYSE: SRXH)

Sector: Healthcare Industry: Medical Care Facilities CIK: 0001471727
Market Cap 5.49 Mn
P/B 13.50
P/E -0.12
P/S 0.84
ROIC (Qtr) 595.60
Div Yield % 0.00
Rev 1y % (Qtr) 70.50
Total Debt (Qtr) 4.47 Mn
Debt/Equity (Qtr) 10.99

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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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 1.31M provide 62.33x coverage of short-term debt 21000, demonstrating strong liquidity position and minimal refinancing risk.
  • Tangible assets of 8.40M provide robust 6.11x coverage of other current liabilities 1.38M, indicating strong asset backing.
  • Tangible assets of 8.40M provide robust 2.37x coverage of current liabilities 3.54M, showing strong asset backing.

Bear case

  • Operating cash flow of (8.14M) barely covers its investment activities of 5.91M, with a coverage ratio of -1.38, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 1.31M provide limited coverage of acquisition spending of 5.94M, which is 0.22x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of (8.14M) shows concerning coverage of stock compensation expenses of 3.21M, with a -2.54 ratio indicating potential earnings quality issues.
  • Operating earnings of (44.38M) show weak coverage of depreciation charges of 31000, with a -1431.55 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of (8.14M) represents just -2.22x of debt issuance 3.66M, 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 4.85 1.26
EV to Cash from Ops. EV/CFO -5.00 12.78
EV to Debt EV to Debt 9.11 12.10
EV to EBIT EV/EBIT -0.92 10.74
EV to EBITDA EV/EBITDA -3.58 16.04
EV to Free Cash Flow [EV/FCF] EV/FCF -5.00 18.02
EV to Market Cap EV to Market Cap 8.76 432.64
EV to Revenue EV/Rev 6.24 2.77
Price to Book Value [P/B] P/B 11.42 -1.92
Price to Earnings [P/E] P/E -0.10 5.13
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 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) -70.67 -97.94
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 -114.65
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 1,134.91 65.22
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.97
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -3.08 -46.98
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -359.29 75.97
EBIT Growth (1y) % EBIT 1y % (Qtr) -3.08 -61.19
EBT Growth (1y) % EBT 1y % (Qtr) -4.53 -115.48
EPS Growth (1y) % EPS 1y % (Qtr) -9.23 -24.32
FCF Growth (1y) % FCF 1y % (Qtr) -3,394.85 309.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 0.00 17.88
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.78 1.04
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.04
Cash Ratio Cash Ratio (Qtr) 0.37 0.39
Current Ratio Curr Ratio (Qtr) 2.29 1.39
Debt to Equity Ratio Debt/Equity (Qtr) 10.99 -13.19
Interest Cover Ratio Int Coverage (Qtr) -70.67 -97.94
Times Interest Earned Times Interest Earned (Qtr) -70.67 -97.94
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -678.70 -95.81
EBIT Margin % EBIT Margin % (Qtr) -679.19 -94.97
EBT Margin % EBT Margin % (Qtr) -688.80 -105.60
Gross Margin % Gross Margin % (Qtr) 23.40 23.31
Net Profit Margin % Net Margin % (Qtr) -688.80 -106.14