Chelsea Stellick of IA Capital Markets is paying attention Carebook Technologies: (Carebook Technologies Stock Quote, Chart, News, Analysts, Financials TSXV: CRBK) Maintaining “Buy” rating :
Founded in 2018, Carebook Technologies is based in Vancouver, developing and marketing individuals, their families, pharmacies, insurers, employers, and mobile clinics.
Stellick’s latest analysis comes after Carebook Technologies appointed Michael Peters, its new chief executive, with more than a decade of experience in healthcare, including senior positions at SE Health.
“Mr. “Peters told us that he hopes to address much of history, that is, the speed of burning, the need to integrate recent achievements into a unified whole,” Stelik said. “It will pursue these goals by focusing primarily on organic capital discipline աճ organic growth as CoreHealth և InfoTech integrates seamlessly across a single vertical, universal modular platform in vertical directions.”
Peters took over the role after CEO Pascal Odette left the company in 2016 in search of other opportunities.
“Carebook has quickly established a strong competitive position in the global digital healthcare industry,” Peters said in a September 7 press release on the lease. “I look forward to joining the Company’s talented team and working together to realize our vision of being a global provider of digital health solutions. We will continue to implement our current strategy, focusing on the acquisition and development of innovative technologies that expand our current service offerings and contribute to the development of new long-term customers. By introducing a leading offering of advanced technologies to our expanding customer base, we will improve Carebook շ շ: շ:::::::::::::::::::::::::::
Stellick notes that the company has several strengths, the most important of which is its partnership with McKesson with a large ongoing development contract, a widely used, flexible, easy-to-use technology platform, and the ability to sell or sell existing Fortune 500 customers. : Certified modules such as Wellness Checkpoint Health Risk Assessment, highly experienced management team և Huge tail of health digitization.
However, he notes that higher-than-expected capital values, higher-than-expected cash burnouts, and a lack of sales have hurt the company’s prospects, although he believes those problems can be addressed.
“Once the new management’s capital discipline is established, along with growing cross-selling of existing solutions, we believe the market will begin to focus on the strengths of the business, including growth potential, which will lead to a change in Carebook needs,” Stelik said.
Carebook has been in the growth industry for the past few months, most recently completing its acquisition of CoreHealth Technologies, which provides corporate health և health insurance plans for corporate health, large insurers, human resource consulting companies, employee support program providers, health systems. Population health care providers, group benefit brokers, health education providers և large employers. “$ 9 million in cash to increase revenue by $ 3 million a year, like a customer base with more than two million licenses, like what the company considers a technology of strategic importance.”
Stelik has slightly revised the company’s financial forecasts, as he now forecasts $ 7 million in revenue for 2021, up from his previous estimate of $ 7.2 million, or that the new figure still doubles to $ 3.5 million in 2020. From there, Stellick plans to almost double revenue to $ 13.9 million in 2022.
Stelik also changed his EBITDA forecast, now adjusting the EBITDA to $ 4.2 million compared to the initial $ 4 million loss forecast for 2021, although he expects it to be positive at $ 1.1 million in 2022; He also expects the EPS to be positive for the first time in 2022 at $ 0.01 / share.
The company’s major trading multiples are also likely to improve on Stellick forecasts, halving by 20.21 to 5.1x by 2020, from 10.2x, followed by another percentage by 2.6x by 2022. Stellick, meanwhile, is projecting a EV / EBITDA multiplier for the first time in 2022, at 34x.
Stelik believes that Peters should lead the Carebook in the right direction, moving forward.
“We believe that the new head of Carebook has made the right decision to prioritize the next steps that will be taken to change market sentiment: acquisition integration, capital discipline, sales, cross-selling, signing of new pharmacy customer solutions, and further M&A. “Oh, to order,” said Stelik. “The core technology և the team is in place, we will closely monitor the progress of these clear goals as the new leadership centralizes the strategy.”
Overall, CareBook shares have been steadily declining throughout 2021, with a 55.4 percent annual loss so far, reaching a high of $ 1.50 / share on January 21.