SCWorx Corp. (NASDAQ: WORX)

Sector: Healthcare Industry: Health Information Services CIK: 0001674227
Market Cap 778,043.35
P/B 0.13
P/E -0.20
P/S 0.28
ROIC (Qtr) -19.94
Div Yield % 0.00
Rev 1y % (Qtr) -7.10
Total Debt (Qtr) 2,845.00
Debt/Equity (Qtr) 0.00

About

SCWorx Corp., known by its stock symbol WORX, operates in the healthcare industry, providing data content and services related to the repair, normalization, and interoperability of information for healthcare providers. The company also offers big data analytics for the healthcare sector. SCWorx's solutions aim to enhance healthcare processes and information flow within hospitals and other healthcare facilities. The company's main business activities revolve around developing and marketing healthcare information technology solutions and associated...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 684295 provide 934.83x coverage of short-term debt 732, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 1.33M provides 468.65x coverage of total debt 2845, indicating robust asset backing and low credit risk.
  • Operating cash flow of (1.55M) fully covers other non-current liabilities (399000) by 3.88x, showing strong long-term stability.
  • Robust tangible asset base of 1.33M provides 8.49x coverage of working capital 157010, indicating strong operational backing.
  • Strong cash position of 684295 provides 1.90x coverage of other current liabilities 360829, indicating excellent liquidity.

Bear case

  • Operating cash flow of (1.55M) provides insufficient coverage of deferred revenue obligations of 399000, which is -3.88x, raising concerns about future service delivery capabilities.
  • Free cash flow of (1.55M) represents just -1.21x of debt issuance 1.28M, suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • High financing cash flow of 2.15M relative to working capital of 157010, which is 13.67x suggests concerning dependence on external funding for operational needs.
  • Operating cash flow of (1.55M) is outpaced by equity issuance of 168000 (-9.22 ratio), indicating concerning reliance on equity markets for funding operations.
  • Debt issuance of 1.28M significantly exceeds working capital of 157010, which is 8.12x, indicating potentially unsustainable leverage for operational funding.

Peer comparison

Companies in the Health Information Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TEM Tempus AI, Inc. 45.63 Bn -223.83 41.29 1.34 Bn
2 GEHC GE HealthCare Technologies Inc. 38.75 Bn 19.85 2.19 10.28 Bn
3 VEEV Veeva Systems Inc 37.30 Bn 43.36 12.11 0.09 Bn
4 DOCS Doximity, Inc. 7.81 Bn 30.87 12.57 0.01 Bn
5 BTSG BrightSpring Health Services, Inc. 7.70 Bn 59.42 0.62 2.70 Bn
6 HQY Healthequity, Inc. 7.32 Bn 38.14 5.67 1.03 Bn
7 WAY Waystar Holding Corp. 5.00 Bn 44.97 4.81 1.25 Bn
8 PRVA Privia Health Group, Inc. 2.79 Bn 153.67 1.37 0.01 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.07 2.77
EV to Cash from Ops. EV/CFO -0.32 -10.86
EV to Debt EV to Debt 172.11 161.93
EV to EBIT EV/EBIT -0.49 -106.48
EV to EBITDA EV/EBITDA -0.43 4.22
EV to Free Cash Flow [EV/FCF] EV/FCF -0.32 7.46
EV to Market Cap EV to Market Cap 0.63 -14.93
EV to Revenue EV/Rev 0.18 1.76
Price to Book Value [P/B] P/B 0.13 10.57
Price to Earnings [P/E] P/E -0.20 147.14
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -8.65
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 5.00
Dividend per Basic Share Div per Share (Qtr) 0.00 0.04
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 4.57
Interest Coverage Int. cover (Qtr) -0.34 -584.72
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 -24.09
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 680.57 172.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -1.05
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 71.07 -17.73
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -24.12 39.85
EBIT Growth (1y) % EBIT 1y % (Qtr) 71.07 -38.83
EBT Growth (1y) % EBT 1y % (Qtr) -10.83 -4.52
EPS Growth (1y) % EPS 1y % (Qtr) 69.16 2.60
FCF Growth (1y) % FCF 1y % (Qtr) -46.86 -48.57
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -22.11 5.49
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.39 0.66
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 0.58 1.87
Current Ratio Curr Ratio (Qtr) 1.13 3.27
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 -0.43
Interest Cover Ratio Int Coverage (Qtr) -0.34 -584.72
Times Interest Earned Times Interest Earned (Qtr) -0.34 -584.72
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -35.80 -435.80
EBIT Margin % EBIT Margin % (Qtr) -35.82 -464.70
EBT Margin % EBT Margin % (Qtr) -139.71 -461.74
Gross Margin % Gross Margin % (Qtr) 26.10 44.03
Net Profit Margin % Net Margin % (Qtr) -139.70 -468.01