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Bullboard - Stock Discussion Forum Quipt Home Medical Corp T.QIPT

Alternate Symbol(s):  QIPT

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... see more

TSX:QIPT - Post Discussion

View:
Post by lscfa on Jan 15, 2023 12:57am

Valuations

Valuation multiple has not budged. Assume it stays constant. In one year's time the co. pays down $14.6 mil per credit agreement and has 10% organic growth. Stock price is $8.93.


 

 

 

Before acquistion

After acquistion

1 yr later

Shs o/s

35,605

36,037

36,037

Sh price

$6.50

$7.50

$8.93

Mkt cap

231,433

270,278

321,974

Net debt

19,690

97,690

82,790

Ent. Value

251,123

367,968

404,764

Ebitda

33,600

49,000

53,900

EV/ebitda

7.47

7.51

7.51

Comment by lscfa on Jan 15, 2023 7:43am
Corrected table. Prior one mixed us and cdn no.s     Before acquisition After acquisition 1 yr later Shs o/s 35,605 36,037 36,037 Sh price US $4.81 $5.64 $6 ...more  
Comment by besttobe on Jan 15, 2023 9:25am
The question will be.....Will they have the profit and FCF to pay down the debt. As it stands now they are a breakeven/loss company, with zero FCF.  GLTA
Comment by lscfa on Jan 15, 2023 9:40am
the bankers think so, thus the loan..
Comment by besttobe on Jan 15, 2023 5:53pm
The bankers have nothing to lose. They now own the company for 20cents on the $. Abviously you lack experience regarding banking and finance.  GLTA
Comment by dawggone on Jan 16, 2023 10:20am
bankers do not lend base on strength of collateral ( but it helps). they lend on ability to repay the loan (cash flow).
Comment by besttobe on Jan 16, 2023 10:37am
Dawggone wrote "bankers do not lend base on strength of collateral ( but it helps). they lend on ability to repay the loan (cash flow)." Banks lend on both collateral and FCF. Just read the Quipt bank agreement for a better understanding, as to what the terms are.  Goodluck to you...
Comment by dawggone on Jan 16, 2023 11:10am
bankers want their cake and eat it, too. they want loan repayment with interest. they do not want to take over ownership of collateral.  that cost them money.  bank regulators wil classify loans to different degrees if they are or become collateral dependant.   banks or bank investors do not classified loans.
Comment by besttobe on Jan 16, 2023 12:49pm
The higher the collateral secured the less risk... then the bigger the loan received and the lower the interest rate given. Sorry, but that is the way it works. We shall see how much debt Quipt pays off. We shall see. 
Comment by dawggone on Jan 16, 2023 3:32pm
don't disagree with most of your last post.  my point is a bank's primary emphasis is customer ability to repay. sure they want ( and get) lots of collateral.  however,  they have to believe there is abiliity to repay the debt without having to foreclose. otherwise, the credit will be subject to being classified by regulators or in-house analyst.
Comment by besttobe on Jan 16, 2023 5:00pm
Yes of course they hope they can repay, just like an investor that wants a return. However, there is no guarantee.  They have taken that risk with very little risk and tight restrictive convenants. (again read the banking agreement) The main thing the banks wants is to make a return with the least amount of risk as possible. They are as you know, lending other peoples money to make money ...more  
Comment by lscfa on Feb 15, 2023 10:53am
Assume valuation multiple does not increase, the co. pays down $14.6 mil/yr per credit agreement and has 10% organic growth. Stock price is $8.98 US in 2 yrs, 43% appreciation.     Now 1 yr later 2 yrs later Shs o/s 36,037  ...more  
Comment by besttobe on Feb 15, 2023 11:11am
ISFCA wrote ', the co. pays down $14.6 mil/yr per credit agreement " Your thinking is flawed. They already stated they will have poor cash flow this year and will go further in debt, thus lower multiple. Thus why I am short. Next few Q's will demonstrate that, as discussed during the CC. GLTA
Comment by lscfa on Feb 15, 2023 12:53pm
You're wrong as usual..... Rahul Sarugaser Okay. That's very often. And then just a quick follow-up then, and then I'll get into back in queue. So in terms of the liquidity availability that you talked about with sort of the pay down on the debt. Can you maybe just give us a sense for your liquidity and the ability to sort of manage these incremental integration costs? And then I& ...more  
Comment by besttobe on Feb 15, 2023 1:11pm
This is debt used for liquitity...IE pay debt with debt. We shall see...  So between our ability on DDTL and the line of credit we feel like extremely comfortable with where we stand
Comment by Tropicalsun on Feb 15, 2023 1:52pm
Anybody that listened to the call, knows that B2B is outright lieing again and posting false information once again. Every word of his post is a complete LIE!!!!!!!
Comment by gibbonsj on Feb 15, 2023 1:12pm
Your share price 1 year out is based on valuation multiples at current. The assumption that because they have not changed to date they will remain on changed one year out is seriously flawed. To better understand the multiple going forward you have to weigh it against growth in institutional holdings because they are the only group that can suppress valuation multiples to the extent we have ...more  
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