RE:Quarter results Emailed Brian. YE and quarter results will be out about end of March
From cormark.
20 Jan 2021
Target Price: $4.25
Current Price 52 Wk High 52 Wk Low Cash*
Debt*
Net Cash/sh. ARR (Q4/20)
Fiscal YE Dec 31 Revenue (MM)
Exit ARR (MM) EBITDA (MM)
$3.12 Shares Outstanding (MM)* $3.42 Basic 35.8 $1.20 Diluted 39.1 $24.2 Insiders 7.5
$1.2 Market Cap. $111.6 $0.64 Float $88.2 $14.6
Investment Conclusion:
Vitalhub continues to be one of our favorite ideas. Compared to peers, Vitalhub has higher recurring revenue (70% vs. 22%) and higher gross margins (75% vs. 52%) yet trades at 4.2x 2021 vs. healthcare IT and MedTech comps at 7.9x sales. Given these superior KPIs, its healthy organic and inorganic growth profile and strong balance sheet, we expect this valuation gap to narrow. We are lifting our valuation multiple to 6.0x 2021 sales from 5.0x previously, which increases our target to $4.25 from $3.75. We maintain our Buy rating.