Health Catalyst Inc

Health Catalyst operates with a market capitalization of $86.1 million and a price-to-book ratio of 0.24, indicating a significant discount to its book value. The company holds $201.4 million in cash and equivalents but carries $228.4 million in long-term debt, resulting in a net cash position of -$27.0 million. This negative net cash position raises liquidity concerns despite a current ratio of 4.31, which suggests the company can cover its short-term liabilities multiple times over.

Profitability metrics show Health Catalyst is currently unprofitable, with a net loss of $20.6 million and an operating loss of $22.8 million. The company's return on equity is -5.76%, and its return on assets is -2.96%, both significantly below the industry median for software firms. Gross profit of $36.6 million represents 49.0% of revenue, which is in line with the industry average for health care technology firms.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to sector-specific risks, particularly in the healthcare technology space. The company's operating cash flow of $10.3 million is positive, but its free cash flow is negative at -$12.8 million, indicating that capital expenditures are outpacing operating cash flow.

Looking ahead, Health Catalyst is expected to see a modest improvement in revenue, with a projected growth rate of 2.5% for the current fiscal year and 3.0% for the next fiscal year. However, the company's operating losses are expected to persist, with a narrowing of the operating loss margin from -30.5% to -28.0% over the next 12 months. The risk assessment indicates a medium liquidity risk due to the negative net cash position and a low dilution risk, with no near-term pressure from share issuance.

Recent filings and transcripts highlight ongoing challenges in scaling the business while maintaining profitability. The company has not issued any new shares in the past 12 months, and there are no indications of a near-term capital raise. Analysts have a mixed outlook, with a mean price target of $1.96 and a median of $2.00, suggesting a potential upside of 67.5% from the current market price of $1.17.

Analysts project 18.7% upside to a mean price target of $1.96 from the current $1.65.

The company maintains a medium leverage band with a debt-to-equity ratio of 0.62.

The company faces high credit risk according to internal risk flag assessments.

Return on equity of -5.76% significantly underperforms the software cohort median of 2.8%.

Revenue $74.7M, −6,2% YoY; Operating income −391,9% YoY.

• ▍Revenue $74.7M, −6,2% YoY
• ▍Operating income −391,9% YoY
• ▍Net income −340,3% YoY
• ▍Free cash flow −454,2% YoY
• ▍Net margin -121.9%

Revenue $76.3M, −0,0% YoY; Operating income −27,9% YoY.

• ▍Revenue $76.3M, −0,0% YoY
• ▍Operating income −27,9% YoY
• ▍Net income −51,0% YoY
• ▍Free cash flow −59,8% YoY
• ▍Net margin -29.1%

Revenue $80.7M, +6,3% YoY; Operating income −134,7% YoY.

• ▍Revenue $80.7M, +6,3% YoY
• ▍Operating income −134,7% YoY
• ▍Net income −203,2% YoY
• ▍Free cash flow −367,6% YoY
• ▍Net margin -50.8%

Revenue $79.4M, +6,3% YoY; Operating income +11,6% YoY.

• ▍Revenue $79.4M, +6,3% YoY
• ▍Operating income +11,6% YoY
• ▍Net income −15,3% YoY
• ▍Free cash flow −30,9% YoY
• ▍Net margin -29.9%

Revenue $79.6M; Operating income -$17.5M.

• ▍Revenue $79.6M
• ▍Operating income -$17.5M
• ▍Net margin -26.0%

Revenue $76.4M; Operating income -$13.7M.

• ▍Revenue $76.4M
• ▍Operating income -$13.7M
• ▍Net margin -19.3%

Revenue $75.9M; Operating income -$15.8M.

• ▍Revenue $75.9M
• ▍Operating income -$15.8M
• ▍Net margin -17.8%

Revenue $74.7M; Operating income -$22.8M.

• ▍Revenue $74.7M
• ▍Operating income -$22.8M
• ▍Net margin -27.6%

Revenue $311.1M, +1,5% YoY; Operating income −130,4% YoY.

• ▍Revenue $311.1M, +1,5% YoY
• ▍Operating income −130,4% YoY
• ▍Net income −156,1% YoY
• ▍Free cash flow −235,7% YoY
• ▍Net margin -57.2%

Revenue $306.6M, +3,6% YoY; Operating income +45,0% YoY.

• ▍Revenue $306.6M, +3,6% YoY
• ▍Operating income +45,0% YoY
• ▍Net income +41,2% YoY
• ▍Free cash flow +50,8% YoY
• ▍Net margin -22.7%

Revenue $295.9M, +7,1% YoY; Operating income +9,4% YoY.

• ▍Revenue $295.9M, +7,1% YoY
• ▍Operating income +9,4% YoY
• ▍Net income +14,0% YoY
• ▍Free cash flow +15,3% YoY
• ▍Net margin -39.9%

Revenue $276.2M, +14,2% YoY; Operating income +2,5% YoY.

• ▍Revenue $276.2M, +14,2% YoY
• ▍Operating income +2,5% YoY
• ▍Net income +10,3% YoY
• ▍Free cash flow +20,6% YoY
• ▍Net margin -49.7%