Quipt Home Medical Corp 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 > Q121 ESTIMATES- STIFEL

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Post by SBAASTOCKS11on Feb 28, 2021 11:32am

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Post# 32681379

Q121 ESTIMATES- STIFEL

BUY

EARNINGS PREVIEW

PTQ: FQ1 2021 preview

Financial Summary

Changes	Previous	Current

Rating	—	Buy
Target Price	—	C$2.60
FY21E EPS	—	C$0.00
FY22E EPS	—	C$0.14
FY21E Revenue	—	C$130.3
FY22E Revenue	—	C$165.5

Price (02/25/21):	C$2.16
52-Week Range:	C$3 - C$0.47
Market Cap.(mm):	C$266.5
Shr.O/S-Diluted (mm):	123.4
Enterprise Val. (mm):	C$260.6
Avg Daily Vol (3 Mo):	816,715
Dividend / Yield:	C$0.00 / 0.0%
FYE	Sep

Revenue

2020A

2021E

2022E

FY (Sep)	C$97.8A	C$130.3	C$165.5
EV/Rev	2.7x	2.0x	1.6x

EBITDA	C$20.8A	C$28.7	C$38.1
EV/EBITDA	12.5x	9.1x	6.8x

EPS	C$(0.07)A	0.00	C$0.14
P/E	NM		15.4x

Summary

PTQ will report Q1 2021 results (end December) after market close on Monday, March 1st. In short, we are estimating ~20% YoY top line growth and ~22% adj. EBITDA margins, reflecting ongoing above industry average organic growth, contributions from recent acquisitions, and margin improvement initiatives. With management's bullish near-term outlook and a NASDAQ listing upcoming, the stock remains cheap at ~8.5x C2021 EBITDA which we see as a compelling buying opportunity.

Key Points

Expectations for Q1: We estimate sales of C$27.4mm (~US$21.6mm), up ~20% YoY, reflecting continued resiliency in the midst of the pandemic and above industry average organic growth. We also factor in contributions from recent acquisitions, including the first partial contribution from the Sleepwell acquisition which closed in late October. Sleepwell is said to now be close to fully integrated and is expected to add ~C$13mm in sales on an annual basis at ~25% adj. EBITDA margins (accretive to PTQ's consolidated margins). We also expect to see margins improve as PTQ continues to leverage its tech investments and as it builds more scale. Collectively, we are looking for ~C$6mm (~US$4.7mm) in adj. EBITDA for the quarter, compared to ~C$4.2mm YoY. Lastly, after some anomalies in the Q4 results we expect a resumption in cash generation and are forecasting~C$2mm in cash from operations. We look forward to reviewing the results and hearing from management on the conference call scheduled for 10am EST on March 2nd. 1-800-319-4610.

Rating: The stock is up +30% over the course of the last 3 months but continues to trade at a discount to peers at ~8.5x and +14x C2021e EBITDA, respectively. We believe continued execution, M&A, and a NASDAQ uplisting should warrant a re-rating. BUY.