Nova Leap Health (NLH) AI Stock Analysis

• Market Cap: C$21.83M
• Dividend Yield: N/A
• Average Volume (3M): 6.90K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.23
• Revenue Growth: -0.12%
• EPS Growth: N/A
• Country: CA
• Employees: N/A
• Sector: Healthcare
• Sector Strength: 57
• Industry: Medical - Care Facilities
• EPS (TTM): 0.02
• Shares Outstanding: 87,314,255
• 10 Day Avg. Volume: 6,140
• 30 Day Avg. Volume: 6,896
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 2.55
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$0.60
• Price Target Upside: 140.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

Nova Leap Health shows potential for profitability improvement with a strong equity base and low leverage. However, challenges in revenue growth and technical indicators reflect a neutral short-term outlook. The P/E ratio suggests fair valuation, supporting a moderate overall stock score.

Nova Leap Health Business Overview & Revenue Model

Company Description

Nova Leap Health (NLH) is a rapidly growing company specializing in the home health care sector. The company focuses on acquiring, managing, and integrating home health care businesses across North America, primarily in the United States and Canada. Nova Leap Health provides essential home care services tailored to meet the needs of the elderly and individuals with physical or mental health challenges, ensuring they receive the support needed to maintain their quality of life in a home setting.

How the Company Makes Money

Nova Leap Health makes money by acquiring and operating home health care businesses that provide services such as personal care, companionship, and assistance with daily living activities. The company's revenue model is based on a fee-for-service structure, where they charge clients or their families for the home care services provided. Additionally, Nova Leap Health may receive payments from government programs, insurance companies, or other third-party payers, depending on the region and specific client circumstances. Strategic acquisitions of underperforming or undervalued home care businesses allow Nova Leap Health to expand its market presence and increase revenue streams, leveraging economies of scale and operational efficiencies to enhance profitability.

Nova Leap Health Financial Statement Overview

Summary

Nova Leap Health exhibits a mixed financial performance with signs of profitability improvement in 2024, supported by a strong equity position and low leverage. While revenue growth poses challenges, the company shows potential in operational efficiency and cash flow management.

Income Statement

Nova Leap Health has demonstrated fluctuations in revenue with a notable decline from $28.2M in 2022 to $25.8M in 2024. Gross profit margin has remained relatively stable, yet net income turned positive in 2024 at $1.38M from a loss in previous years, indicating improved profitability. EBIT and EBITDA margins are positive but show room for enhancement, highlighting potential operational efficiency improvements.

Balance Sheet

The company maintains a healthy equity base with an equity ratio of approximately 81.5% in 2024. The debt-to-equity ratio is relatively low at 0.14, suggesting manageable leverage. Return on equity improved significantly in 2024, reflecting enhanced profitability and effective use of equity.

Cash Flow

Operating cash flow decreased to $1.39M in 2024 from $2.15M in 2023, reflecting potential challenges in cash generation from operations. However, the company maintains positive free cash flow. The operating cash flow to net income ratio is strong at 1.01, indicating efficient conversion of income to cash.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
25.76M	26.18M	28.21M	21.28M	17.31M
	Gross Profit
9.89M	9.77M	9.98M	7.21M	5.87M
	EBIT
863.71K	460.15K	-1.10M	3.89M	1.81M
	EBITDA
2.50M	994.47K	420.35K	4.76M	2.36M
	Net Income Common Stockholders
1.38M	-1.05M	-835.75K	1.76M	1.26M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.40M	894.76K	1.27M	1.73M	2.78M
	Total Assets
22.39M	20.90M	23.95M	26.77M	17.54M
	Total Debt
2.53M	1.40M	3.97M	6.20M	5.96M
	Net Debt
1.12M	503.65K	2.69M	4.47M	3.18M
	Total Liabilities
4.14M	2.70M	5.27M	8.29M	7.69M
	Stockholders Equity
18.25M	18.20M	18.68M	18.48M	9.84M
Cash Flow		Free Cash Flow
1.36M	2.13M	949.49K	2.18M	3.01M
	Operating Cash Flow
1.39M	2.15M	1.02M	2.18M	3.01M
	Investing Cash Flow
-1.59M	-23.13K	-56.24K	-7.40M	-1.56M
	Financing Cash Flow
729.78K	-2.52M	-1.41M	4.33M	-325.46K

Nova Leap Health Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.25
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NLH, the sentiment is Positive. The current price of 0.25 is above the 20-day moving average (MA) of 0.24, above the 50-day MA of 0.24, and below the 200-day MA of 0.26, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 57.80 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:NLH.

Nova Leap Health Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXE	71 Outperform	C$1.21B	16.24	70.86%	3.32%	12.36%	123.26%
NLH	65 Neutral	C$21.83M	11.42	7.58%	―	-0.12%	―
SIA	63 Neutral	C$1.58B	34.15	8.99%	5.45%	13.72%	429.22%
KPT	59 Neutral	C$80.85M	33.17	3.53%	8.90%	―	―
HLS	54 Neutral	C$139.89M	―	-23.20%	―	-8.80%	26.77%
Sector *	52 Neutral	$5.35B	3.96	-42.60%	2.86%	17.58%	1.27%
CSH.UN	51 Neutral	C$5.05B	206.74	2.36%	3.44%	15.38%	-84.98%

Nova Leap Health Corporate Events

Nova Leap Health Corp. Expands Market Presence with Nova Scotia Acquisitions

Nova Leap Health Corp. has announced the successful acquisition of two affiliated home care services companies in Nova Scotia, signaling an expansion of its market presence in the region. This strategic move, approved by the shareholders, enhances Nova Leap’s operational reach and aligns with its growth strategy in the home health care sector, benefiting stakeholders by potentially increasing service capacity and market influence.