Nova Leap Health - 2023 performance of the closest competitors comparisons
Stock performance 2023 Aveanna Healthcare Holdings +51.17%
Amedisys +10.65%
Enhabit +8.83%
Addus Homecare +6.05%
Pennant Group - +5.02%
Nova Leap Health +2.00% What stands out here, in my opinion, is that all of these companies are directly affected by the CMS cut in the industry this year:
https://mcbeeassociates.com/insights/blog/outlining-the-cms-2023-home-health-final-rule/
The only exception? Nova Leap Health which conducts almost exclusively Non-Medical Home Care (look at what is included and excluded on page 4 of the latest investor presentation) and is therefore not affected by this:
https://novaleaphealth.com/corporate-presentation/
This only exception that I know of is CareStaf which I wrote a twitter thread about last year:
https://twitter.com/BetulaKapital/status/1511073838204964868
As you can read on "9/":
”The company’s business is comprised of approximately 60% private or non-Medicare health care in the home, and
40% staffing primarily focused on hospice care."
Another thing that naturally stands out is the debts. Do you think any of these competitors can pay off their debts next year?
Nova Leap Health's liabilities according to the latest report and investor presentation:
| BMO Debt summary(1) |
| 5 year amort. @ US base rate plus 1.5% | US$72,420 |
| 7 year amort. @ US base rate plus 1.5% | US$520,092 |
| 5 year amort. @ CDN prime rate plus 2.0% | C$131,731 |
| 5 year amort. @ CDN prime rate plus 1.5% | C$202,952 |
"
1. Demand loan summary; excludes promissory notes and other debt related items."
These are of course just two short observations of 100s that you can compare, especially when it comes to the financial numbers. I am thinking of writing a longer analysis of Nova Leap Health now during Q1 and could then go into this more deeply.