Quipt Home Medical Corp V.QIPT

Primary Symbol: T.QIPT Alternate Symbol(s): QIPT

Healthcare

Quipt Home Medical Corp. is a home medical equipment provider. The Company specializes in improving the home management of chronic illness through the application of telehealth systems and automated distribution. It provides in-home monitoring and disease management services, including end-to-end respiratory solutions for patients in the United States. It offers nebulizers, oxygen concentrators, continuous positive airway pressure (CPAP) and Bilevel Positive Airway Pressure (BiPAP) units; traditional and non-traditional medical respiratory equipment and services, and non-invasive ventilation equipment, supplies, and services. The Company's product offerings include the management of several chronic disease states focusing on patients with heart or pulmonary disease, sleep disorders, reduced mobility, and other chronic health conditions. Its products and services consist of sleep apnea and pap treatment, home ventilation, daily and ambulatory aides, and respiratory equipment rental.

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Quipt Home Medical Corp > Assessment

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Post by retiredcfon Sep 26, 2022 7:26am

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Post# 34985789

Assessment

Can you provide your thoughts around QIPT's closing of the Senior Credit Facility? How do you like its growth potential and risk/reward profile for future stock potential?

The credit facility is not overly material but will certainly help fund any new acquisitions the company finds. But, it provides potential $110M in capital for deals. We highly doubt the company gets that aggressive but in a declining market valuations become more attractive, of course. Q3 EPS of nil missed estimates of 3c per share. Sales of $36.6M were slightly higher than estimates. Revenue rose 40%; Sequential organic growth was 2%. Recurring revenue was 77% of total. Net debt is essentially zero now, with current cash of $18.5M. Analysts expect EPS to double in F2023. At 41X earnings, the stock is not cheap but the quarter was a record and the revenue run rate is now $160M. With the pandemic easing the sector has rolled over a bit, and this may hurt sentiment towards the stock. We also might see some year-end tax selling. Overall we would consider it decent, but not great. (5iResearch)

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