dentalcorp Holdings (DNTL) AI Stock Analysis

• Market Cap: C$1.63B
• Dividend Yield: N/A
• Average Volume (3M): 215.17K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.92
• Revenue Growth: 8.27%
• EPS Growth: -84.94%
• Country: CA
• Employees: 9,900
• Sector: Healthcare
• Sector Strength: 66
• Industry: Healthcare Providers & Services
• EPS (TTM): -0.31
• Shares Outstanding: 188,895,680
• 10 Day Avg. Volume: 309,611
• 30 Day Avg. Volume: 215,170
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.01
• Price to Cash Flow (P/CF): 7.50
• P/FCF Ratio: 6.00
• 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: C$12.84
• Price Target Upside: 56.01% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

Dentalcorp Holdings has a mix of strengths and challenges. The company's strong revenue and cash flow growth are offset by profitability issues and an unappealing valuation due to its negative P/E ratio. The technical analysis suggests bearish trends, but the positive sentiment from the earnings call indicates potential for improvement. Addressing operational inefficiencies and profitability challenges will be key to enhancing the stock's performance.

Positive Factors

Financial Performance

There is a compelling financial profile with resilient top-line and free cash flow growth.

Growth Opportunity

Dentalcorp is viewed as a unique Canadian growth stock with a multi-year opportunity to continue to grow its market-leading network of dental clinics.

Mergers and Acquisitions

The company's pace of M&A could nudge higher while still spending within free cash flow.

Negative Factors

Stock Overhang

The selling shareholder group remains an overhang on the stock.

dentalcorp Holdings Business Overview & Revenue Model

Company Description

dentalcorp Holdings Ltd., through its subsidiaries, acquires and partners with dental practices to provide health care services in Canada. As of December 31, 2021, it owned and operated a network of approximately 458 dental practices supported by approximately 7,400 team members, including 1,400 dentists, 1,700 hygienists, and 4,100 auxiliary dental health professionals. The company was formerly known as Dentalcorp Overbite Ltd. dentalcorp Holdings Ltd. was founded in 2011 and is headquartered in Toronto, Canada.

How the Company Makes Money

Dentalcorp Holdings generates revenue primarily through the acquisition and operation of dental practices. The company earns money by providing dental services to patients across its network of clinics. Revenue streams include fees for dental procedures, routine check-ups, and specialized treatments such as orthodontics and oral surgery. Dentalcorp leverages economies of scale through centralized management and shared resources, enhancing the profitability of its acquired practices. Additionally, partnerships with dental suppliers and insurance companies contribute to cost efficiencies and expand patient access, further supporting its revenue model.

dentalcorp Holdings Financial Statement Overview

Summary

Dentalcorp Holdings shows solid revenue growth and strong cash flow generation, but faces challenges with profitability and return on equity. The company's balance sheet is stable, with manageable debt levels and a healthy equity ratio.

Income Statement

In the TTM period, dentalcorp Holdings showed a positive revenue growth of 5.90% compared to the previous year. However, the net profit margin is negative, reflecting a net loss, which indicates profitability challenges. Gross profit margin is relatively strong at 38.70%, but EBIT and EBITDA margins are low at 2.57% and 13.22% respectively, signaling operational inefficiencies.

Balance Sheet

The balance sheet demonstrates a moderate debt-to-equity ratio of 0.79, suggesting manageable leverage. The equity ratio is healthy at 52.10%, indicating a strong capital structure. However, the return on equity is negative due to the net loss, pointing to challenges in generating shareholder value.

Cash Flow

Cash flow analysis reveals a robust operating cash flow to net income ratio of -2.31, indicating strong cash generation relative to earnings. The free cash flow to net income ratio is -1.88, demonstrating efficient conversion of earnings into cash. Free cash flow growth has been positive at 23.67%, supporting liquidity.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
1.51B	1.43B	1.25B	1.03B	666.24M	767.49M
	Gross Profit
584.40M	493.70M	611.90M	495.40M	321.65M	385.42M
	EBIT
38.80M	43.50M	7.70M	-80.50M	-50.50M	14.65M
	EBITDA
199.60M	197.40M	183.40M	75.10M	99.70M	117.78M
	Net Income Common Stockholders
-81.50M	-85.60M	-16.60M	-160.40M	-157.15M	-63.91M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
101.54M	39.00M	110.50M	141.80M	101.54M	85.42M
	Total Assets
2.57B	3.29B	3.38B	2.84B	2.57B	2.48B
	Total Debt
1.65B	1.35B	1.37B	1.15B	1.65B	1.54B
	Net Debt
1.55B	1.32B	1.26B	1.01B	1.55B	1.45B
	Total Liabilities
1.98B	1.55B	1.59B	1.32B	1.98B	1.75B
	Stockholders Equity
583.97M	1.74B	1.79B	1.51B	583.97M	727.15M
Cash Flow		Free Cash Flow
153.20M	123.80M	106.00M	36.80M	-49.53M	1.30M
	Operating Cash Flow
188.40M	153.40M	138.60M	55.10M	-32.28M	25.23M
	Investing Cash Flow
-156.10M	-172.10M	-419.80M	-262.90M	-154.06M	-308.14M
	Financing Cash Flow
-62.90M	-52.30M	247.50M	248.10M	202.46M	304.22M

dentalcorp Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.23
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DNTL, the sentiment is Positive. The current price of 8.23 is above the 20-day moving average (MA) of 7.66, above the 50-day MA of 7.73, and below the 200-day MA of 8.29, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 64.96 is Neutral, neither overbought nor oversold. The STOCH value of 88.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:DNTL.

dentalcorp Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DNTL	58 Neutral	C$1.63B	―	-3.38%	―	8.27%	-84.94%
Sector *	49 Neutral	$6.88B	0.82	-52.97%	2.48%	20.92%	1.17%
KNE	44 Neutral	C$13.06M	―	-813.02%	―	―	―
MDNA	43 Neutral	C$78.22M	―	-149.09%	―	―	-67.03%

dentalcorp Holdings Corporate Events

Dentalcorp to Engage with Investors at Key Conferences

Dentalcorp Holdings Ltd. announced its participation in several upcoming investor conferences across North America, including events in Toronto, Whistler, Boston, and Montreal. This participation reflects Dentalcorp’s commitment to engaging with investors and stakeholders, potentially enhancing its visibility and influence in the dental industry.

Dentalcorp Secures $100 Million Through Treasury Offering

Dentalcorp Holdings has successfully closed a $100 million treasury and secondary offering of subordinate voting shares at $9.50 each, raising $50 million in gross proceeds for the company and $50 million for selling shareholders. The offering was led by a syndicate of underwriters, including TD Securities, RBC Capital Markets, and Canaccord Genuity. The shares were also offered privately in the U.S. to qualified institutional buyers.

Dentalcorp’s $100 Million Share Offering Announcement

Dentalcorp Holdings has filed a final short form prospectus for its bought deal treasury offering and secondary offering of subordinate voting shares, expected to raise approximately $100 million. With a distribution of over 10 million shares priced at $9.50 each, the offering is anticipated to close around December 2, 2024, subject to customary conditions.

Dentalcorp Announces $100 Million Share Offering

Dentalcorp Holdings is launching a $100 million bought deal offering, divided equally between a treasury and secondary offering of subordinate voting shares. The company plans to use the proceeds from its treasury offering to reduce leverage, while the secondary offering involves shares from existing stakeholders. Closing of the offering is expected around December 2, 2024, pending regulatory approvals.

Dentalcorp Holdings Reports Strong Q3 Financial Growth

Dentalcorp Holdings has reported a robust third quarter for 2024, with a notable 11.4% increase in revenue and a 13.1% rise in adjusted EBITDA compared to the previous year. The company also achieved significant growth in adjusted free cash flow and successfully expanded its practice portfolio, bolstering its financial standing.

Dentalcorp Holdings Shows Strong Q3 2024 Growth

Dentalcorp Holdings shows impressive financial growth in the third quarter of 2024, with a notable 11.4% revenue increase and a 13.1% rise in adjusted EBITDA compared to last year. The company has also strategically expanded through acquisitions and improved its financial structure by reducing debt, leading to an expected annual savings of $6 million.

Dentalcorp Partners with VideaHealth to Boost Care

Dentalcorp Holdings has announced a strategic partnership with VideaHealth to integrate AI technology across its dental practices, aiming to enhance patient care and operational efficiency. This collaboration is expected to improve dental condition detection and streamline workflows, setting new standards in the industry. The move marks a significant step in Dentalcorp’s long-term growth strategy.