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Premier Health of America Inc V.PHA

Premier Health of America Inc. is a Canadian healthtech company. The Company provides a comprehensive range of outsourced service solutions for healthcare needs to governments, corporations, and individuals. The Company uses its proprietary LiPHe platform to lead the healthcare services sector in digital transformation to provide patients with more accessible care services. The Company operates through two segments: Per Diem and Travel Nurses. The Per Diem segment includes Premier Soin and Code Bleu, two of its Quebec subsidiaries that offer their respective services for nursing and assistance by profile and by region. The Travel nurse segment includes Canadian Health Care Agency, Premier Soin Nordik, Solutions Nursing as well as Solutions Staffing, four of its subsidiaries that offer their respective services to the federal and provincial governments for nursing and assistance, including in remote regions.


TSXV:PHA - Post by User

Post by Torontojayon Jul 05, 2023 6:24am
134 Views
Post# 35526818

Trading at 100% free cash flow?

Trading at 100% free cash flow?

Let me go over the company's future prospects. Given the sufficient working capital situation, it's not at all far fetched for Premier to achieve anywhere between $5-10m in free cash flow (excluding acquisition). Most of that would come be collections from accounts receivables plus net income that the company would generate. Now add in an additional $3-5m from this acquisition and it takes us to $8-15m in fcf. This is almost equal to the market cap of the company! Any concerns over the debt situation should subside as they are generating significant cash to cover their interest expense even at higher rates. 

As long as they continue to acquire companies at these cheap multiples then shareholders should see pretty good returns going forward. From a mathematical point of view, they could dilute shareholders with an equity raise and it would still be beneficial to shareholders in the long run. 

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