Lionheart Acquisition II (MSPR) AI Stock Analysis

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Lionheart Acquisition II

(NASDAQ:MSPR)

31Underperform

MSPR's stock score is heavily impacted by its poor financial performance, characterized by significant losses and high leverage. The technical analysis indicates bearish momentum, and the valuation underscores the risk with a negative P/E ratio. The combined challenges suggest a need for substantial improvements to offer a more attractive investment proposition.

Lionheart Acquisition II (MSPR) vs. S&P 500 (SPY)

Market Cap

$19.57M

Dividend YieldN/A

Average Volume (3M)3.07M

Price to Earnings (P/E)―

Beta (1Y)2.66

Revenue Growth24.77%

EPS Growth13.53%

CountryUS

Employees78

SectorHealthcare

Sector Strength69

IndustryMedical - Healthcare Information Services

Share Statistics

EPS (TTM)-231.16

Shares Outstanding4,920,520

10 Day Avg. Volume9,111,061

30 Day Avg. Volume3,068,159

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)11.72

Price to Cash Flow (P/CF)-0.30

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Lionheart Acquisition II Business Overview & Revenue Model

Company DescriptionMSP Recovery (LIFW) is a technology-driven healthcare recovery and data analytics company that focuses on recovering improperly paid benefits from Medicare, Medicaid, and commercial insurance. The company operates in the healthcare sector, leveraging its proprietary data analytics platform to identify and pursue recoveries for healthcare payers.

How the Company Makes MoneyMSP Recovery makes money primarily through the recovery of improperly paid healthcare claims. The company partners with healthcare providers, payers, and other entities to identify and recover claims that have been improperly paid by Medicare, Medicaid, or commercial insurers. MSP Recovery earns a percentage of the recovered funds as its revenue. The company's data-driven approach allows it to efficiently mine large datasets to identify claims that are eligible for recovery. Additionally, MSP Recovery's partnerships with healthcare organizations enhance its ability to access data and expand its recovery efforts.

Lionheart Acquisition II Financial Statement Overview

Summary

Overall, MSP Recovery faces significant financial challenges with declining profitability, high leverage, and cash flow constraints. While there is some revenue growth, it is overshadowed by substantial ongoing losses. The balance sheet shows a high debt burden, and cash flows are insufficient to support operations, indicating a need for strategic improvements to stabilize and improve financial health.

Income Statement

Negative

The company shows a troubling trend with declining revenues and consistently negative profit margins. The TTM (Trailing-Twelve-Months) report revealed a gross profit margin of -2188.71%, a net profit margin of -906.35%, and an EBIT margin of -5002.15%. Additionally, the revenue growth rate between 2023 and 2024 was 39.35%, indicating revenue growth, but this is overshadowed by significant losses in profitability. The EBITDA margin improved to 66.15% in the TTM, yet the overall profitability remains a concern.

Balance Sheet

Negative

The company exhibits high leverage with a debt-to-equity ratio of 2.54 in the TTM period. The equity ratio has improved to 10.78%, indicating some financial stability, but return on equity remains negative at -32.41%, reflecting ongoing challenges in generating shareholder value. The balance sheet is burdened by substantial liabilities, limiting financial flexibility.

Cash Flow

Very Negative

The cash flow situation is concerning, with a negative free cash flow growth rate of 31.94% from 2023 to 2024. The operating cash flow to net income ratio is 0.27, reflecting difficulties in converting income to cash. Furthermore, the free cash flow to net income ratio at 0.30 indicates insufficient cash flow relative to net losses, raising liquidity concerns.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
10.73M	7.71M	23.42M	14.63M	13.89M
	Gross Profit
-235.06M	5.56M	21.37M	14.44M	13.71M
	EBIT
-537.02M	-559.87M	-331.48M	-7.17M	-3.33M
	EBITDA
71.02M	-69.22M	-13.54M	-5.52M	-2.97M
	Net Income Common Stockholders
-97.32M	-56.35M	-7.42M	-33.09M	-24.25M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.88M	11.63M	3.66M	1.66M	11.88M
	Total Assets
17.84M	3.16B	3.42B	104.01M	17.84M
	Total Debt
0.00	679.33M	324.25M	106.81M	24.04M
	Net Debt
-11.88M	667.70M	320.59M	105.14M	12.16M
	Total Liabilities
42.13M	1.74B	1.23B	255.41M	133.69M
	Stockholders Equity
-120.18M	272.39M	109.69M	-155.76M	-120.18M
Cash Flow		Free Cash Flow
-28.90M	-42.47M	-86.32M	1.62M	-344.00K
	Operating Cash Flow
-26.34M	-40.02M	-80.64M	2.25M	-14.00K
	Investing Cash Flow
-2.56M	7.56M	-5.68M	-2.01M	986.00K
	Financing Cash Flow
26.99M	29.02M	99.73M	-10.46M	9.61M

Lionheart Acquisition II Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price1.98

Price Trends

50DMA

1.88

Positive

100DMA

1.99

Negative

200DMA

3.64

Negative

Market Momentum

MACD

0.10

Negative

RSI

52.49

Neutral

STOCH

25.73

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MSPR, the sentiment is Neutral. The current price of 1.98 is above the 20-day moving average (MA) of 1.76, above the 50-day MA of 1.88, and below the 200-day MA of 3.64, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 52.49 is Neutral, neither overbought nor oversold. The STOCH value of 25.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MSPR.

Lionheart Acquisition II Risk Analysis

Lionheart Acquisition II disclosed 95 risk factors in its most recent earnings report. Lionheart Acquisition II 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

Lionheart Acquisition II Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HIMS	68 Neutral	$6.24B	52.52	30.71%	―	69.33%	―
OSCR	64 Neutral	$3.06B	―	2.80%	―	56.54%	―
Sector *	51 Neutral	$5.32B	3.41	-40.36%	2.89%	17.93%	2.52%
CLOV	50 Neutral	$1.75B	―	-14.75%	―	-32.45%	80.24%
MSPR	31 Underperform	$19.57M	―	-193.31%	―	24.77%	13.53%

* Healthcare Sector Average

Performance Comparison

MSPR

Lionheart Acquisition II

1.98

-22.27

-91.84%

HIMS

Hims & Hers Health

28.09

15.54

123.82%

CLOV

Clover Health Investments

3.43

2.76

411.94%

OSCR

Oscar Health

12.23

-5.17

-29.71%

Lionheart Acquisition II Earnings Call Summary

Earnings Call Date: Apr 16, 2025 | % Change Since: -14.29% | Next Earnings Date: May 14, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted LifeWallet's successful settlements and increased claims recovery income, demonstrating progress in its core business model. However, the company also reported a significant operating loss, primarily due to noncash items. Overall, while there are substantial achievements, the financial results reflect ongoing challenges.

Highlights

Successful Settlements with Insurers

LifeWallet achieved two comprehensive settlements with multiple property and casualty insurers, resolving claims and establishing a process for future claims. The settlements include provisions for data sharing and a 5-year agreement for binding mediation of Medicare claim liens.

Increased Claims Recovery Income

The company generated claims recovery income of $6 million in Q1 2024, up from $3.5 million in Q1 2023, indicating progress in its recovery strategies.

Expansion of Data Collaboration

LifeWallet entered into a tri-party data collaboration agreement with Palantir Technologies and 28 affiliated settling counterparties to enhance its ability to reconcile Medicare liabilities.

Liquidity and Financial Flexibility

LifeWallet extended its obligations with Virage, Nomura, and Yorkville to 2025, and secured a working capital credit facility with an additional $14 million borrowing capacity.

Lowlights

Significant Operating Loss

LifeWallet reported an operating loss of $130 million for Q1 2024, with 93% attributed to noncash items such as claims amortization expense.

Intangible Asset Decrease

Total assets decreased by $124 million from December 31, 2023, primarily due to the amortization of intangible assets.

Company Guidance

During the LifeWallet First Quarter 2024 earnings call, the company provided guidance highlighting significant achievements and financial metrics. LifeWallet reached two comprehensive settlements with property and casualty insurers, which included agreements to provide 10 years of historical data and to collaboratively resolve future Medicare claims. These settlements resulted in claims recovery income of $6 million for Q1 2024, an increase from the $3.5 million reported in Q1 2023. The company reported a total operating loss of $130 million, primarily driven by non-cash items, with an adjusted operating loss of $8.7 million after excluding claims amortization expenses. LifeWallet's total assets were valued at $3 billion, with liabilities amounting to $1.8 billion. The company has extended various obligations to 2025 and secured additional liquidity through a working capital credit facility and a Yorkville standby equity purchase agreement, ensuring its ability to meet cash obligations over the next year.

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.