Quipt Home Medical (QIPT) AI Stock Analysis

• Market Cap: C$129.27M
• Dividend Yield: N/A
• Average Volume (3M): 15.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.06
• Revenue Growth: 2.00%
• EPS Growth: -38.48%
• Country: CA
• Employees: 1,200
• Sector: Healthcare
• Sector Strength: 60
• Industry: Medical - Devices
• EPS (TTM): -0.04
• Shares Outstanding: 43,091,274
• 10 Day Avg. Volume: 6,251
• 30 Day Avg. Volume: 15,195
• 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: 2.41
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 1.76
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$6.11
• Price Target Upside: 103.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Quipt Home Medical shows strong revenue growth and cash flow management, yet faces challenges with profitability and liabilities. While operational efficiency is improving, technical indicators are bearish, and valuation metrics are unattractive due to negative earnings. The company's strong liquidity and strategic focus on growth could improve future prospects, but current market conditions and revenue headwinds pose risks.

Positive Factors

Financial Performance

The adj-EBITDA improved sequentially, providing an encouraging sign of financial health.

Investor Confidence

The stake by Kanen Wealth Management increased to 5.9%, indicating confidence in Quipt's potential.

Strategic Initiatives

Quipt is focusing on organic growth by reinforcing patient referral relationships, expanding its footprint, and broadening its product portfolio while maintaining margins.

Negative Factors

Disappointing Results

CY'24 has been a disappointment with results revised lower, primarily due to non-renewal of the 75/25 blended rate and roll-off of Humana MA members.

Revenue Growth

The termination of a disposable supply contract is expected to cause a $2.5 million headwind in revenue growth.

Sector Challenges

Quipt has underperformed, driven by headwinds encountered by the managed care sector on higher medical cost trends and reimbursement changes.

Quipt Home Medical Business Overview & Revenue Model

Company Description

Quipt Home Medical (QIPT) is a healthcare company specializing in providing in-home health monitoring and disease management services. The company operates primarily in the United States and focuses on offering patients a comprehensive suite of respiratory therapy and durable medical equipment. Quipt Home Medical is dedicated to improving the quality of life for its patients by ensuring they have access to essential healthcare services and equipment in the comfort of their own homes.

How the Company Makes Money

Quipt Home Medical generates revenue through the sale and rental of durable medical equipment (DME), such as respiratory devices including oxygen concentrators, ventilators, and CPAP machines. Additionally, the company earns income by providing related services such as in-home respiratory therapy, sleep apnea treatment, and patient monitoring. Revenue is primarily driven by reimbursements from Medicare, Medicaid, and private insurance companies. The company also benefits from strategic partnerships with healthcare providers and hospitals, which facilitate patient referrals and expand its customer base. Quipt Home Medical's focus on chronic respiratory conditions positions it to capture ongoing revenue streams from long-term patient relationships and recurring equipment rentals.

Quipt Home Medical Financial Statement Overview

Summary

Quipt Home Medical displays strong revenue growth and solid cash flow management. However, challenges in achieving net profitability and managing increasing liabilities are notable concerns. The company's financial health is bolstered by consistent operational cash flow, suggesting potential for improved profitability with strategic adjustments.

Income Statement

Quipt Home Medical has demonstrated consistent revenue growth, with a revenue increase from $221.74 million in 2023 to $241.93 million in TTM 2024, highlighting positive sales momentum. However, despite growing revenues and gross profit margins (71.6% in TTM 2024), profitability remains a challenge, as indicated by negative net income margins (-3% in TTM 2024). The EBIT margin is marginally positive, suggesting minimal operational profitability.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 0.95 in TTM 2024, reflecting balanced leverage. However, the return on equity is concerning due to negative net income, affecting shareholder returns. The equity ratio remains stable at approximately 43.8%, indicating a sound capital structure but with limited financial flexibility due to rising liabilities.

Cash Flow

Quipt Home Medical exhibits robust cash flow management, with a healthy free cash flow of $20.52 million in TTM 2024. The operating cash flow to net income ratio is strong, showcasing effective cash generation from operations despite net losses. Free cash flow growth has been variable, but the company maintains a solid cash position to support future investments and operations.

Breakdown
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
245.91M	221.74M	139.86M	102.35M	54.85M
	Gross Profit
176.99M	163.84M	106.65M	74.18M	39.80M
	EBIT
1.11M	3.92M	4.73M	-1.46M	―
	EBITDA
57.04M	44.07M	28.05M	13.21M	14.35M
	Net Income Common Stockholders
-6.76M	-2.78M	4.84M	-6.17M	―
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
16.17M	17.21M	8.52M	34.61M	21.88M
	Total Assets
247.25M	247.41M	132.21M	108.57M	53.95M
	Total Debt
99.80M	97.96M	10.93M	27.05M	17.17M
	Net Debt
83.63M	80.75M	2.41M	-7.56M	―
	Total Liabilities
140.06M	136.29M	52.67M	49.95M	32.81M
	Stockholders Equity
107.19M	111.11M	79.55M	58.62M	21.14M
Cash Flow		Free Cash Flow
25.07M	33.75M	17.38M	13.65M	―
	Operating Cash Flow
35.38M	40.54M	26.34M	18.69M	―
	Investing Cash Flow
-10.31M	-82.83M	-42.49M	-17.84M	―
	Financing Cash Flow
-26.15M	50.87M	-9.85M	3.91M	10.48M

Quipt Home Medical Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.00
• 50DMA: Negative
• 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:QIPT, the sentiment is Negative. The current price of 3 is above the 20-day moving average (MA) of 2.90, below the 50-day MA of 3.24, and below the 200-day MA of 3.83, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 46.40 is Neutral, neither overbought nor oversold. The STOCH value of 71.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:QIPT.

Quipt Home Medical Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ASG	63 Neutral	C$26.25M	―	-20.84%	―	21.14%	74.94%
QIPT	60 Neutral	C$129.27M	―	-6.08%	―	2.00%	-38.48%
PRN	54 Neutral	C$220.49M	―	-59.43%	―	51.21%	15.33%
Sector *	52 Neutral	$5.35B	3.83	-41.61%	2.85%	17.10%	1.22%
PINK	50 Neutral	C$34.52M	―	-105.26%	―	113.85%	11.38%
VPT	44 Neutral	C$22.83M	―	207.08%	―	280.56%	-7.28%
TLT	40 Underperform	C$44.60M	―	-214.26%	―	-3.45%	12.98%

Quipt Home Medical Corporate Events

Quipt Home Medical to Release Q2 2025 Financial Results

Quipt Home Medical Corp. is set to announce its fiscal second quarter 2025 financial results on May 12, 2025. The company will host a conference call for investors the following day, led by CEO Gregory Crawford and CFO Hardik Mehta. This announcement is part of Quipt’s ongoing efforts to communicate financial performance and strategic direction to stakeholders, reflecting its commitment to transparency and growth in the home medical equipment industry.

Spark’s Take on TSE:QIPT Stock

According to Spark, TipRanks’ AI Analyst, TSE:QIPT is a Neutral.

Quipt Home Medical shows strong revenue growth and cash flow management, yet faces challenges with profitability and liabilities. While operational efficiency is improving, technical indicators are bearish, and valuation metrics are unattractive due to negative earnings. The company’s strong liquidity and strategic focus on growth could improve future prospects, but current market conditions and revenue headwinds pose risks.

To see Spark’s full report on TSE:QIPT stock, click here.

Quipt Home Medical Reports Q1 2025 Financial Results with Improved EBITDA

Quipt Home Medical Corp. reported its financial results for the first quarter of fiscal year 2025, showing a slight decrease in revenue to $61.4 million and a reduced net loss of $1.1 million. Despite the challenges posed by the cessation of the Medicare 75/25 blended rate and other setbacks, such as the non-renewal of a disposable supply contract, the company maintained strong cash flow and recurring revenue, along with a sequential improvement in adjusted EBITDA, which increased by 4.5% from the previous quarter.