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Joint Corp (JYNT)
NASDAQ:JYNT
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Joint
(NASDAQ:JYNT)54Neutral
Positive Factors
Digital Innovation
JYNT introduced digital appointment scheduling and check-in capabilities across 500 locations, which generated positive patient feedback.
Financial Health
At quarter-end, JYNT had $17.5M in cash and no debt.
Negative Factors
Guidance Revision
The company lowered 2024 sales and clinic opening guidance, reflecting management's expectation of continued softness in patient demand through 4Q24.
Industry Challenges
Despite reporting a slight y/y improvement in 3Q24 revenue and announcing signs of a rebound in patient demand back in July, industry headwinds persisted throughout 3Q24 and are likely to continue.
Operational Uncertainty
The potential sale, relocation, or closure of company-owned clinics creates uncertainty.
Joint (JYNT) vs. S&P 500 (SPY)
Market Cap
$164.52M
Dividend YieldN/A
Average Volume (3M)30.35K
Price to Earnings (P/E)―
Beta (1Y)0.92
Revenue Growth5.14%
EPS Growth-994.26%
CountryUS
Employees794
SectorHealthcare
Sector Strength74
IndustryHealthcare Providers & Services
Share Statistics
EPS (TTM)-1.14
Shares Outstanding14,983,609
10 Day Avg. Volume33,538
30 Day Avg. Volume30,349
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.36
Price to Cash Flow (P/CF)11.90
P/FCF Ratio12.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$20.00Price Target Upside85.36% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Joint Business Overview & Revenue Model
Company DescriptionJoint Corp (JYNT) is a leading operator, manager, and franchisor of chiropractic clinics in the United States. The company operates in the healthcare sector, focusing on providing affordable and convenient chiropractic care through a network of company-owned or franchised clinics. The Joint offers a modern, consumer-friendly approach to chiropractic care, targeting individuals seeking pain relief and ongoing wellness management without the need for insurance, appointments, or long waits.
How the Company Makes MoneyJoint Corp makes money primarily through two main revenue streams: franchise operations and company-owned or managed clinics. The franchise model generates revenue through initial franchise fees, ongoing royalty fees based on the gross sales of the franchised clinics, and the sale of regional developer rights. Additionally, Joint Corp earns income from company-owned or managed clinics by providing chiropractic services directly to customers, which includes membership fees, walk-in visit fees, and service packages. The company's business is supported by strategic marketing initiatives and partnerships that help expand its brand recognition and clinic network across the nation.
Joint Financial Statement Overview
Summary
Joint has demonstrated revenue growth; however, profitability and leverage are areas of concern. The company needs to focus on improving operational efficiency and reducing debt reliance to enhance financial stability. Cash flow remains a relative strength, providing a foundation for addressing these challenges.Income Statement
The company has shown a steady increase in revenue over the years, with a 3% growth in TTM compared to the previous year. However, the profitability has been a concern as indicated by the negative EBIT and net income margins in the TTM period. Gross profit margin remains strong at 86.9%, but the net profit margin is negative, highlighting inefficiencies in managing operating expenses.60
Neutral
Balance Sheet
The debt-to-equity ratio improved over the years but remains relatively high, indicating potential leverage risk. The equity ratio has decreased from previous years, now at 25.7%, suggesting a higher dependency on debt financing. Return on equity has significantly declined, pointing to challenges in generating profits from shareholders' equity.55
Neutral
Cash Flow
Operating cash flow is positive and covers net income, indicating strong cash generation. However, free cash flow growth rate is negative, reflecting challenges in maintaining liquidity after capital expenditures. The operating cash flow to net income ratio is favorable, showing efficient cash management despite reporting net losses.65
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 120.80M | 117.70M | 101.91M | 81.19M | 58.68M | 48.45M | Gross Profit |
| 104.94M | 107.15M | 92.08M | 72.68M | 52.18M | 42.88M | EBIT |
| -1.95M | -2.07M | 2.90M | 6.01M | 5.49M | 3.41M | EBITDA |
| 3.51M | 9.14M | 7.89M | 12.16M | 8.18M | 5.43M | Net Income Common Stockholders |
| -16.86M | -9.75M | 1.18M | 7.57M | 13.17M | 3.32M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 8.72M | 18.15M | 9.75M | 19.53M | 20.55M | 8.46M | Total Assets |
| 23.53M | 87.15M | 91.94M | 84.04M | 65.73M | 43.71M | Total Debt |
| 1.10M | 16.73M | 26.06M | 22.45M | 18.48M | 14.27M | Net Debt |
| -7.62M | -1.42M | 16.31M | 2.92M | -2.07M | 5.82M | Total Liabilities |
| 21.17M | 62.38M | 59.54M | 54.48M | 44.98M | 37.99M | Stockholders Equity |
| 2.36M | 24.75M | 32.37M | 29.54M | 20.75M | 5.72M |
| Cash Flow | Free Cash Flow | ||||
| 7.65M | 9.68M | 2.31M | 6.85M | 6.99M | 3.36M | Operating Cash Flow |
| 8.67M | 14.68M | 11.08M | 15.23M | 11.18M | 7.52M | Investing Cash Flow |
| -1.83M | -6.19M | -20.78M | -14.14M | -4.60M | -7.14M | Financing Cash Flow |
| -1.98M | 174.12K | 328.61K | -2.00M | 5.60M | -596.96K |
Joint Technical Analysis
Negative
10.79
Price Trends
11.01
Negative
11.16
Negative
12.02
Negative
Market Momentum
-0.06
Positive
38.18
Neutral
21.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JYNT, the sentiment is Negative. The current price of 10.79 is below the 20-day moving average (MA) of 11.33, below the 50-day MA of 11.01, and below the 200-day MA of 12.02, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 38.18 is Neutral, neither overbought nor oversold. The STOCH value of 21.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JYNT.
Joint Risk Analysis
Joint disclosed 41 risk factors in its most recent earnings report. Joint reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Joint Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
56 Neutral | $863.51M | ― | -913.07% | ― | 34.43% | 17.74% | |
54 Neutral | $164.52M | ― | -60.51% | ― | 5.14% | -994.26% | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% | |
49 Neutral | $669.63M | ― | -22.87% | ― | 7.08% | 20.45% | |
43 Neutral | $419.87M | ― | -12.32% | ― | -9.23% | -359.07% | |
36 Underperform | $1.99M | ― | 52.08% | ― | -32.57% | -15.03% |
* Healthcare Sector Average
Performance Comparison
JYNT
Joint
10.79
-2.29
-17.51%
CUTR
Cutera
0.13
-1.89
-93.56%
OFIX
Orthofix
16.74
2.44
17.06%
SRDX
SurModics
29.37
-0.08
-0.27%
EOLS
Evolus
12.68
-1.33
-9.49%
Joint Earnings Call Summary
Earnings Call Date: Nov 7, 2024 | % Change Since: -9.18% | Next Earnings Date: Mar 13, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of achievements and challenges. While there were strong performances in system-wide sales and strategic initiatives like refranchising and digital improvements, these were countered by financial setbacks such as decreased net income and revised growth projections due to consumer headwinds.Highlights
System-Wide Sales Growth
System-wide sales increased to $129.3 million, up 8% from the previous year.
Refranchising Strategy Progress
The company refranchised 1 clinic and saw broad interest in their corporate clinics, with ongoing transactions for 9 clinics in Savannah and Kansas City.
Increased Digital Lead Conversion
New patient digital lead conversion increased from 46% in July to 49% in September.
Launch of Initial Visit Bookings Platform
The platform has been rolled out to 500 clinics, resulting in strong qualitative and quantitative feedback from new patients.
25th Anniversary Celebration and Franchise Recognition
The Joint chiropractic network celebrated its 25th anniversary and was recognized in Franchise Tank's Top 400 list, moving up 18 spots to Position 150.
Lowlights
Decreased Net Income
Net loss was $3.2 million, compared to a net loss of $716,000 in Q3 2023.
Revised Financial Guidance
Guidance for system-wide comp sales growth was adjusted downwards, with expectations now between 3% to 4%.
Consumer Headwinds Affecting Growth
Ongoing consumer headwinds led to a slight cooling in comps, prompting a revision in growth expectations.
Increased Loss on Disposition or Impairment
Loss on disposition or impairment was $3.8 million, a significant increase from the $905,000 reported in Q3 2023.
Company Guidance
During the Q3 2024 earnings call for The Joint Corp., several key metrics and strategic plans were discussed. The company reported system-wide sales of $129.3 million, up 8% year-over-year, and a total clinic count of 963 as of September 30, 2024. The system-wide comp sales for clinics open at least 13 months increased by 4%. Despite these gains, the company adjusted its 2024 guidance, anticipating system-wide sales between $525 million and $535 million, reflecting ongoing consumer headwinds. New franchise clinic openings are expected to be between 55 and 60, a decrease from the previous year due to refranchising efforts. Adjusted EBITDA for Q3 2024 was $2.4 million, with franchise clinic adjusted EBITDA increasing by 9% to $5.8 million. Refranchising remains a focus, with a portfolio mix now 87% franchised, as the company aims to reinvest capital raised from these efforts. CEO Sanjiv Razdan emphasized initiatives to strengthen clinic economics, enhance patient care, and drive innovation.Joint Corporate Events
Business Operations and StrategyFinancial Disclosures
Joint Corp. Reports Revenue Growth Amid Strategic Changes
Neutral
Nov 7, 2024
The Joint Corp. reported a 2% revenue increase to $30.2 million for Q3 2024, despite a net loss of $3.2 million. The company continues its strategic refranchising efforts, resulting in a total of 963 clinics. CEO Sanjiv Razdan emphasized the company’s focus on growth, refranchising, and enhancing clinic economics to boost profitability and shareholder value. The company adjusted its 2024 guidance due to consumer headwinds, with expected system-wide sales between $525 million and $535 million.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.