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MSP Recovery (MSPR)
NASDAQ:MSPR
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MSP Recovery
(NASDAQ:MSPR)
31Underperform
MSP Recovery (MSPR) vs. S&P 500 (SPY)
Market Cap
$10.01M
Dividend YieldN/A
Average Volume (3M)49.31K
Price to Earnings (P/E)―
Beta (1Y)2.22
Revenue Growth24.77%
EPS Growth13.53%
CountryUS
Employees88
SectorHealthcare
Sector Strength78
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)-139.97
Shares Outstanding2,114,001
10 Day Avg. Volume52,320
30 Day Avg. Volume49,307
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
MSP Recovery 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.
MSP Recovery 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
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.25
Negative
Balance Sheet
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.30
Negative
Cash Flow
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.20
Very Negative
| Breakdown | ||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| 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 |
MSP Recovery Technical Analysis
Negative
1.42
Price Trends
1.97
Negative
2.02
Negative
4.36
Negative
Market Momentum
-0.22
Positive
32.70
Neutral
27.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MSPR, the sentiment is Negative. The current price of 1.42 is below the 20-day moving average (MA) of 1.54, below the 50-day MA of 1.97, and below the 200-day MA of 4.36, indicating a bearish trend. The MACD of -0.22 indicates Positive momentum. The RSI at 32.70 is Neutral, neither overbought nor oversold. The STOCH value of 27.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MSPR.
MSP Recovery Risk Analysis
MSP Recovery disclosed 95 risk factors in its most recent earnings report. MSP Recovery 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
MSP Recovery Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $6.22B | 52.34 | 30.71% | ― | 69.33% | ― | |
69 Neutral | $3.25B | ― | 2.80% | ― | 56.54% | ― | |
48 Neutral | $6.86B | 1.11 | -50.22% | 2.47% | 16.71% | 1.53% | |
45 Neutral | $1.79B | ― | -14.75% | ― | -32.45% | 80.24% | |
31 Underperform | $10.01M | ― | -33.24% | ― | 24.77% | 13.53% |
* Healthcare Sector Average
Performance Comparison
MSPR
MSP Recovery
1.42
-31.33
-95.66%
HIMS
Hims & Hers Health
27.99
13.48
92.90%
CLOV
Clover Health Investments
3.51
2.78
380.82%
OSCR
Oscar Health
13.61
-0.79
-5.49%
MSP Recovery Earnings Call Summary
Earnings Call Date: Nov 14, 2024 | % Change Since: -38.26% | Next Earnings Date: Aug 7, 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.