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Joint Corp (JYNT)
:JYNT
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Joint
(NASDAQ:JYNT)
48Neutral
Positive Factors
Cash and Debt Management
JYNT had $25.1M in cash and no debt, and it is expected to generate positive cash flows from continuing operations.
Digital Strategy
The Joint is advancing its digital strategy, with increased online scheduling capabilities and the launch of its first mobile app expected, which could improve the patient experience and drive repeat visits.
Profitability and Margin Structure
The strategic shift is anticipated to result in The Joint becoming an overall more profitable business with an improved margin structure.
Negative Factors
Operational Uncertainty
The potential sale, relocation, or closure of company-owned clinics creates uncertainty.
Restructuring Risks
Execution risks remain, as the company has yet to finalize the sale of a significant number of corporate-owned clinics.
Volatility in Performance
The restructuring timeline remains uncertain, and near-term performance could be volatile.
Joint (JYNT) vs. S&P 500 (SPY)
Market Cap
$152.72M
Dividend YieldN/A
Average Volume (3M)70.56K
Price to Earnings (P/E)―
Beta (1Y)1.06
Revenue Growth-26.14%
EPS Growth23.04%
CountryUS
Employees443
SectorHealthcare
Sector Strength38
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)-0.03
Shares Outstanding15,302,772
10 Day Avg. Volume63,463
30 Day Avg. Volume70,559
Financial Highlights & Ratios
PEG Ratio-0.35
Price to Book (P/B)<0.01
Price to Sales (P/S)0.00
P/FCF Ratio18.60
Enterprise Value/Market Cap0.84
Enterprise Value/Revenue0.31
Enterprise Value/Gross Profit3.43
Enterprise Value/Ebitda4.16
Forecast
1Y Price Target
$13.83Price Target Upside36.80% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
Joint Business Overview & Revenue Model
Company DescriptionThe Joint Corp. develops, owns, operates, supports, and manages chiropractic clinics. The company operates in two segments, Corporate Clinics and Franchise Operations. It operates through direct ownership, management arrangements, franchising, and regional developers. As of March 1, 2022, the company operated approximately 700 locations in the United States. The Joint Corp. was incorporated in 2010 and is headquartered in Scottsdale, Arizona.
How the Company Makes MoneyThe Joint Chiropractic makes money primarily through the operation of its company-owned clinics and franchise-owned clinics. Revenue is generated from the sale of chiropractic services and membership plans that offer patients benefits such as discounted rates and unlimited visits. The company charges franchise fees and collects royalties from franchisees, which contribute to its revenue streams. Additionally, The Joint Chiropractic's business model focuses on high patient volume and low-cost service delivery, enabling profitability through economies of scale. Strategic partnerships with franchisees and a focus on expanding its network further enhance its revenue-generating capabilities.
Joint Financial Statement Overview
Summary
Joint shows a positive revenue growth trend and strong operating cash flow, but faces challenges with profitability and debt management. Improvements in cost control and leveraging its equity position could enhance overall financial stability.Income Statement
The company's revenue has shown growth over the years, with a notable increase from 2022 to 2023. However, the company is currently operating at a net loss, with negative net profit and EBIT margins, indicating potential issues with cost management or pricing strategies.60
Neutral
Balance Sheet
The debt-to-equity ratio has improved, showing strong equity backing, but the company still carries significant debt, which could pose risks. Additionally, the return on equity is negative due to the net loss, impacting overall financial health.55
Neutral
Cash Flow
The company has demonstrated strong operating cash flow, with positive free cash flow growth. However, the high net income loss affects the free cash flow to net income ratio, suggesting potential issues with profitability conversion.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 51.90M | 117.70M | 101.91M | 81.19M | 58.68M | Gross Profit |
| 40.38M | 107.15M | 92.08M | 72.68M | 52.18M | EBIT |
| -1.76M | -2.07M | 2.90M | 6.01M | 5.49M | EBITDA |
| 2.98M | 9.14M | 7.89M | 12.16M | 8.18M | Net Income Common Stockholders |
| -8.53M | -9.75M | 1.18M | 7.57M | 13.17M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 25.05M | 18.15M | 9.75M | 19.53M | 20.55M | Total Assets |
| 80.42M | 87.15M | 91.94M | 84.04M | 65.73M | Total Debt |
| 448.29K | 16.73M | 26.06M | 22.45M | 18.48M | Net Debt |
| -24.60M | -1.42M | 16.31M | 2.92M | -2.07M | Total Liabilities |
| 62.48M | 62.38M | 59.54M | 54.48M | 44.98M | Stockholders Equity |
| 17.92M | 24.75M | 32.37M | 29.54M | 20.75M |
| Cash Flow | Free Cash Flow | |||
| 8.23M | 9.68M | 2.31M | 6.85M | 6.99M | Operating Cash Flow |
| 9.42M | 14.68M | 11.08M | 15.23M | 11.18M | Investing Cash Flow |
| -631.55K | -6.19M | -20.78M | -14.14M | -4.60M | Financing Cash Flow |
| -2.00M | 174.12K | 328.61K | -2.00M | 5.60M |
Joint Technical Analysis
Negative
10.11
Price Trends
10.85
Negative
10.91
Negative
11.18
Negative
Market Momentum
-0.20
Negative
46.50
Neutral
45.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JYNT, the sentiment is Negative. The current price of 10.11 is above the 20-day moving average (MA) of 10.08, below the 50-day MA of 10.85, and below the 200-day MA of 11.18, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 46.50 is Neutral, neither overbought nor oversold. The STOCH value of 45.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JYNT.
Joint Risk Analysis
Joint disclosed 40 risk factors in its most recent earnings report. Joint reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Joint Peers Comparison
Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $195.35M | 24.24 | 16.56% | ― | 14.85% | 64.96% | |
67 Neutral | $179.55M | 14.48 | 10.59% | 2.23% | -19.92% | ― | |
63 Neutral | $150.88M | 6.58 | -7.92% | ― | 6.44% | 322.20% | |
60 Neutral | $163.79M | 269.49 | 1.48% | ― | 8.06% | ― | |
52 Neutral | $5.04B | 3.15 | -44.58% | 2.85% | 16.08% | -0.27% | |
48 Neutral | $152.72M | ― | -27.25% | ― | -26.14% | 23.04% | |
38 Underperform | $102.13M | ― | -262.12% | ― | 239.92% | 79.41% |
* Healthcare Sector Average
Performance Comparison
JYNT
Joint
10.11
-7.55
-42.75%
ARAY
Accuray
1.59
-0.08
-4.79%
ELMD
Electromed
19.55
2.49
14.60%
SGMO
Sangamo Biosciences
0.45
-0.16
-26.23%
UTMD
Utah Medical Products
54.85
-14.27
-20.65%
BTMD
biote
4.02
-1.82
-31.16%
Joint Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: -3.99%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative aspects. While there was notable revenue growth and significant progress in franchise expansion, there were also challenges such as a decline in adjusted EBITDA, decreased sales in mature clinics, increased operational costs, and a decline in franchise license sales.Q1-2025 Updates
Positive Updates
Revenue Growth
Revenue from continuing operations increased by 7% in Q1 2025 compared to Q1 2024, reaching $13.1 million due to a greater number of franchise clinics.
System-Wide Sales Increase
System-wide sales were $132.6 million, up 5% compared to Q1 2024, demonstrating resilience in the current economic environment.
Franchise Expansion Progress
93% of corporate clinics are under letters of intent (LOIs) for refranchising, showing significant progress towards becoming a pure-play franchisor.
Cost Management
General and administrative (G&A) expenses were reduced to $6.9 million or 53% of revenue, down from 60% of revenue in the same period last year.
Negative Updates
Decline in Adjusted EBITDA
Adjusted EBITDA from continuing operations was $46,000 compared to $425,000 in Q1 2024, indicating a significant decrease.
Mature Clinics Sales Decline
Comp sales for mature clinics open forty-eight months were down 2% in Q1 2025.
Increase in Costs
Cost of revenues increased by 10% due to higher regional developer royalties and commissions, reflecting the greater number of franchise clinics in operation.
Franchise License Sales Decline
Only nine franchise licenses were sold in Q1 2025 compared to 15 in Q1 2024, affected by the refranchising strategy.
Company Guidance
During The Joint Corp.'s Q1 2025 financial results call, the company provided guidance that emphasized its strategic transition to a pure-play franchisor model, with plans to refranchise 93% of its corporate clinics by the end of 2025. Key financial metrics included a 5% increase in system-wide sales to $132.6 million and a 7% rise in revenue from continuing operations compared to Q1 2024. Adjusted EBITDA from continuing operations, however, decreased to $46,000 from $425,000 in the prior year. The company reported comp sales growth of 3% for clinics open thirteen months, with a slight increase to 4% in March 2025, while mature clinics open forty-eight months experienced a 2% decline. The guidance for 2025 is driven by strategic initiatives like dynamic revenue management, enhanced digital marketing, and strengthening franchise relationships, indicating an expected improvement in profitability in 2026 as they fully transition to a franchise model.Joint Corporate Events
Business Operations and StrategyFinancial Disclosures
Joint Corp. Reports Q1 2025 Financial Results
Neutral
May 8, 2025
On May 8, 2025, The Joint Corp. reported its financial results for the first quarter of 2025, showing a 7% increase in revenue from continuing operations to $13.1 million compared to the same period in 2024. Despite a net loss from continuing operations of $506,000, the company demonstrated economic resilience with a 5% increase in system-wide sales to $132.6 million. The company is undergoing a transition to become a pure-play franchisor, implementing new marketing and operational strategies to enhance growth and profitability. The Joint Corp. expects system-wide sales to reach between $550 million and $570 million in 2025, with new franchised clinic openings projected between 30 and 40.
Spark’s Take on JYNT Stock
According to Spark, TipRanks’ AI Analyst, JYNT is a Neutral.
Joint Corp.’s stock reflects moderate performance with notable revenue growth and strategic refranchising efforts. However, profitability challenges, economic headwinds, and bearish technical indicators weigh down the score. The company’s focus on improving EBITDA through executive incentives and refranchising could enhance future performance.
To see Spark’s full report on JYNT stock, click here.
Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Joint Corp. Amends Executive Incentive Plan for 2025
Positive
Mar 13, 2025
On March 10, 2025, The Joint Corp.’s Board of Directors approved an amendment to the Executive Short-Term Incentive Plan, linking executive bonuses to adjusted EBITDA performance. The company reported a 14% revenue increase for Q4 2024, with net income of $986,000 from continuing operations, marking a significant improvement from a $10.2 million loss in Q4 2023. The Joint Corp. plans to focus on refranchising and enhancing digital marketing to drive growth in 2025, with expectations of increased clinic openings and sales in 2026.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.