RE:RE:Quebec offers nurses 18k to end staffing crisis
colourama wrote: Do you think these bonus incentives are likely to represent a significant threat to Premier Health's core business? The way the stock has reacted (about -30%) in the last couple of months, the investment community seems to think the company's growth prospects have vanished.
I didn't think the latest news release was terrible, but I am not an expert so keen to hear other views.
Its difficult to quantify the impact this will have going forward but I'm sure they'll be just fine. Let's look at the positives:
Q4 ebitda is expected to be $1,439,191.
I used the mid-point of managements guidance for the year.
Revenue in Q4 should come in at around $ 16,500,056. Ebitda margin in Q4 is expected to be around 8.72%
Q3 ebitda: $1,309,833
Q3 revenue $ 18,636,277
Q3 ebitda margin =~ 7.02%
Q4 ebitda is actually expected to be higher than Q3 ebitda even though revenue is a bit lighter. Ebitda margins have improved but I will be monitoring gross margins going forward. Hopefully they can keep it above 24% and closer to 25%. Keep in mind that just a 1% increase in sales while keeping their cost of sales and operating expenses fixed would increase Ebitda by about 14.6% !
The enterprise value for Premier Health is just over 10 times expected Ebitda which is very attractive given the market opportunity in front of them.