CareCloud (CCLD) AI Stock Analysis

• Market Cap: $27.31M
• Dividend Yield: N/A
• Average Volume (3M): 216.82K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.33
• Revenue Growth: -8.39%
• EPS Growth: -147.29%
• Country: US
• Employees: 3,600
• Sector: Healthcare
• Sector Strength: 78
• Industry: Healthcare Providers & Services
• EPS (TTM): -3.19
• Shares Outstanding: 16,256,235
• 10 Day Avg. Volume: 420,317
• 30 Day Avg. Volume: 216,817
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.24
• Price to Cash Flow (P/CF): 1.00
• P/FCF Ratio: 1.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $4.50
• Price Target Upside: 181.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

CareCloud's stock score reflects a mixed financial performance with consistent net losses and declining revenues, balanced by positive cash flow trends and low leverage. The technical analysis suggests potential short-term weakness, while the valuation remains challenging due to unprofitability. However, the earnings call and corporate events indicate strategic improvements and a positive outlook, contributing to an overall moderate score.

Positive Factors

Cost Management

Cost cuts have improved Carecloud's cash generation and resulted in a near-record AEBITDA, enabling plans to restart preferred dividends in early 2025.

Financial Performance

CareCloud reported 3Q24 adjusted EBITDA of $6.8M, up 111% year over year.

Negative Factors

Revenue Forecast

The flattening 2025 outlook has led to a lowering of the revenue forecasts, impacting the stock rating to Neutral from Buy.

CareCloud Business Overview & Revenue Model

Company Description

CareCloud (CCLD) is a technology company specializing in providing cloud-based solutions for healthcare providers. The company's core offerings include electronic health records (EHR), practice management, revenue cycle management (RCM), and telehealth services. CareCloud serves medical practices of various sizes, helping them streamline their operations, improve patient care, and enhance financial performance by leveraging innovative technology solutions.

How the Company Makes Money

CareCloud generates revenue primarily through subscription fees for its cloud-based healthcare solutions. Its key revenue streams include software-as-a-service (SaaS) offerings for electronic health records and practice management systems. Additionally, the company earns income from revenue cycle management services, where it assists healthcare providers in managing billing and collections processes, typically earning a percentage of the collected revenue. Partnerships with healthcare providers and institutions also contribute to its earnings by expanding its customer base and integrating its solutions into broader healthcare networks.

CareCloud Financial Statement Overview

Summary

CareCloud is facing financial difficulties with declining revenues and consistent net losses. While there is a healthy gross profit margin and low leverage, persistent negative profit margins and reduced equity are significant challenges. Positive free cash flow growth indicates potential for recovery.

Income Statement

CareCloud's income statement shows significant challenges. The TTM (Trailing-Twelve-Months) data reveals a negative net profit margin of -35.25%, with the company facing consistent net losses from previous years. Gross profit margin is relatively stable at 36.17%, but revenue has declined by approximately 5.17% from the previous annual period. Negative EBIT and EBITDA margins further highlight operational inefficiencies, indicating a need for strategic restructuring to enhance profitability.

Balance Sheet

The balance sheet presents a mixed picture. The debt-to-equity ratio is low at 0.08, suggesting manageable leverage. However, stockholders' equity has decreased compared to prior periods, impacting the equity ratio, which is currently 65.80%. The declining equity and total assets underscore potential long-term sustainability risks, despite the current low debt levels.

Cash Flow

Cash flow analysis indicates some positive trends. Free cash flow has grown substantially, with a 248.08% increase compared to the previous annual period, reflecting improved cash management. The operating cash flow to net income ratio is not meaningful due to negative net income, but operating cash flow itself remains positive, supporting operational liquidity.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
111.01M	117.06M	138.83M	139.60M	105.12M	64.44M
	Gross Profit
40.15M	46.24M	54.39M	52.68M	40.30M	23.25M
	EBIT
5.06M	-47.12M	4.06M	3.53M	-8.26M	-421.10K
	EBITDA
-22.03M	-31.29M	21.02M	19.22M	4.57M	3.13M
	Net Income Common Stockholders
-39.14M	-48.67M	5.43M	2.84M	-8.81M	-871.80K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
14.47M	3.33M	12.30M	9.34M	20.93M	19.99M
	Total Assets
47.62M	77.83M	136.17M	140.85M	138.00M	56.40M
	Total Debt
500.18K	14.73M	13.81M	16.87M	11.47M	4.10M
	Net Debt
-13.97M	11.40M	1.51M	7.53M	-9.46M	-15.90M
	Total Liabilities
8.75M	36.11M	34.48M	42.92M	36.75M	13.57M
	Stockholders Equity
38.87M	41.72M	101.69M	97.93M	101.25M	42.84M
Cash Flow		Free Cash Flow
13.39M	3.85M	9.38M	2.77M	-8.64M	5.06M
	Operating Cash Flow
19.15M	15.46M	21.15M	13.33M	-892.00K	7.62M
	Investing Cash Flow
-7.43M	-11.61M	-11.77M	-23.15M	-31.47M	-4.16M
	Financing Cash Flow
-15.56M	-13.29M	-7.65M	-519.00K	33.42M	1.42M

CareCloud Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCLD, the sentiment is Negative. The current price of 1.6 is below the 20-day moving average (MA) of 3.24, below the 50-day MA of 3.40, and below the 200-day MA of 2.82, indicating a bearish trend. The MACD of -0.48 indicates Positive momentum. The RSI at 22.94 is Positive, neither overbought nor oversold. The STOCH value of 5.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CCLD.

CareCloud Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSTM	67 Neutral	$960.81M	50.12	5.72%	0.34%	4.51%	32.28%
NRC	66 Neutral	$349.56M	14.62	61.77%	3.16%	-3.72%	-17.12%
CCLD	60 Neutral	$27.31M	―	-58.13%	―	-8.39%	-147.29%
Sector *	49 Neutral	$6.90B	-0.08	-53.01%	2.43%	24.84%	-3.06%

CareCloud Corporate Events

CareCloud Increases Authorized Shares to 85 Million

On January 27, 2025, CareCloud, Inc. held a special meeting where a record-breaking number of shareholders approved an amendment to increase the authorized shares of common stock from 35 million to 85 million. This decision reflects strong shareholder support and positions the company for potential growth, indicating confidence in its future operations and market strategy.

CareCloud Resumes Dividend Payments Reflecting Strong Performance

On January 21, 2025, CareCloud announced the early resumption of dividend payments for its Series A and Series B Cumulative Redeemable Perpetual Preferred Stock, reflecting strong financial performance and a commitment to shareholder value. The company has declared dividends for January and February 2025 and intends to maintain a higher dividend rate for a period before adjusting to a lower rate, highlighting its success in accelerating free cash flow and its focus on achieving profitability and growth.

CareCloud Announces Leadership Realignment for Growth Strategy

CareCloud has announced a strategic realignment of its leadership team to drive its 2025 growth strategy, with Crystal Williams appointed as President, and A. Hadi Chaudhry and Stephen Snyder serving as Co-CEOs. The new leadership structure aims to focus on technology-driven innovations, revenue growth, and improved client experience, positioning CareCloud for sustained growth and enhanced shareholder value. This comes after a transformative year in 2024 where the company achieved significant financial milestones, including a return to positive GAAP income, a 50% increase in adjusted EBITDA, and a substantial rise in their stock value.

CareCloud Seeks Shareholder Approval for Share Increase

CareCloud, a leader in healthcare information technology, is soliciting proxies from its shareholders to approve an increase in authorized shares, aiming to bolster growth and corporate objectives. The proposal, backed by the board, seeks to expand authorized shares from 35 million to 85 million, facilitating strategic initiatives like acquisitions and conversions of preferred stock. With a strong growth record and a focus on profitability, CareCloud underscores the importance of shareholder participation in this pivotal decision.

CareCloud Sees Significant Q3 2024 Financial Turnaround

CareCloud, a leader in healthcare technology, reported impressive financial results for Q3 2024, including a significant turnaround from a net loss to a net income of $3.1 million. The company achieved a 405% increase in free cash flow and fully repaid its $10 million credit line, paving the way for resuming dividends on preferred stock in 2025. With enhanced profitability driven by generative AI integration, CareCloud is poised for future growth and value creation.