To Sustain The Rally
What is the difference between Quipt and AHCO in 2023? Qipt CapEx is forcast to decline while AHCO CapEx is forcast to increase. This is one of the biggest reasons why Quipt’s share price will grow substantially in 2023 while AHCO will continue to underperform.
“The company's CapEx as a function of revenues declined last quarter, "a trend that the company will like to maintain" per language on
the Q1 call. Quarterly CapEx pulled to 3.1% of turnover, 6.7% on a TTM basis, down from 8.4% and 6.8% respectively. Capital intensity looks to be decreasing. The lighter capital charge is coupled with projected upticks in revenue and profitability, meaning the prospect for QIPT to throw off attractive rates of cash to shareholders is quite high.” Result, substantial growth in
FCFE!
IMHO this is fantastic news going forward into 2023 and beyond! Anyone that has questions in regard to FCF as it relates to financial statements and a DME company like Quipt, should speak with their financial planner or accountant for a detailed explanation.
Best regards