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JYNT

Joint NasdaqCM:JYNT Stock Report

Last Price

US$15.71

Market Cap

US$227.7m

7D

-0.4%

1Y

-83.6%

Updated

02 Oct, 2022

Data

Company Financials +
JYNT fundamental analysis
Snowflake Score
Valuation0/6
Future Growth4/6
Past Performance1/6
Financial Health4/6
Dividends0/6

JYNT Stock Overview

The Joint Corp. develops, owns, operates, supports, and manages chiropractic clinics.

Joint Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Joint
Historical stock prices
Current Share PriceUS$15.71
52 Week HighUS$103.30
52 Week LowUS$13.10
Beta1.3
1 Month Change-6.93%
3 Month Change-2.36%
1 Year Change-83.62%
3 Year Change-12.67%
5 Year Change216.10%
Change since IPO138.75%

Recent News & Updates

Aug 05

The Joint Corp.: Weakening Bottom-Line Fundamentals Unsupportive In Current Landscape

The Joint Corp. posted Q2 FY22 earnings yesterday with upsides in revenue and EPS versus consensus. The company continued on its growth initiative in growing franchise and company-managed locations last quarter. Despite this, bottom-line fundamentals continued to weaken and display a lack of affinity to the equity premia investors are paying a premium for in FY22. With numerous alternative names on display within the health care providers and services space, we rate JYNT a hold. Investment summary As the macro thematic continues to mould itself in FY22 investors should look to position alongside factors of quality and resiliency. We are on the hunt for long-term cash compounders that can beat the WACC hurdle and offer investors some pricing asymmetry to the upside. As such, we look to The Joint Corp. (YNT) and find it displays a loose affinity to the equity premia we are seeking exposure to in FY22. With weakening bottom-line fundamentals and looming pressures within the marketplace from its growth plans, we rate JYNT neutral. Exhibit 1. JYNT 6-month price action Data: Refinitiv Eikon Q2 earnings: Weakening bottom-line fundamentals Turnover came in 24% higher in Q2 FY22 with a $5.1 million gain in revenue across the quarter to $25 million. JYNT recognizes revenue from 7 sources, as seen in Exhibit 2, and each of these saw meaningful growth YoY as well. Exhibit 2. JYNT books revenue from 7 sources and each saw meaningful upside YoY last quarter This didn't carry through to the bottom line however, and this is where we find initial challenges with the JYNT investment debate. Data: JYNT 10-Q August 4, 2022 Growth was underscored by new store openings and growth of the company's underlying operations. JYNT did see a 20% YoY headwind in cost of revenue, although this is in-line with macro expectations of cost inflation, supply chain headwinds and the rest. However, it also built out additional expenses with its new IT platform and recognized costs from its franchised clinics. The number of clinics with sales more than $550,000 is now 308, up more than 82% from FY20. As seen below, operating metrics continue to stretch up for the company on a sequential basis. It has averaged ~$1.4 million [$5.6 million annualized] in quarterly FCF conversion since FY18 and investors currently realize a 1.2% FCF yield. However, FCF has been softening in recent years alongside net profit margins which have thinned to single digits. Exhibit 3. Quarterly operating performance, whilst LT growth, has recently rolled over and been stagnant Data : HB Insights; JYNT SEC Filings Meanwhile, operating costs gained 23% YoY as the number of new franchised and managed clinics continued to ramp up (discussed later). As a result, operating income came in at $473,000 versus a $2 million this time last year. This carried down to net income of $345,00 and $0.02 in EPS. Given the acquisition of R&D territory rights during the quarter, amid other capital budgeting moves, cash from investing activities came in at $11 million due to these investments. Alas, the company is profitable however profitability measures have narrowed substantially since peaking in Q4 FY20. We are looking for increasing measures of profitability, not decreasing. As it stands, the company's WACC is 11.7% and it therefore must compound capital at that level looking ahead to present as compelling value. Exhibit 4. Ideally we'd look to see an increasing set of trends in profitability measures Data: HB Insights, JYNT SEC Filings Management felt confident to reaffirm FY22 full guidance and expects $102 million at the top this year for the upper range. It also forecasts non-GAAP EBITDA of around $14.0 million whereas it says it is on track to grow franchised clinic openings between 110-130 more locations and another 30-40 in company owned clinics. The pace at which JYNT opens new clinics is a noteworthy key performance indicator ("KPI") for the company. As seen in the image below, taken from JYNT's Q2 FY22 investor presentation, it continues to increase the number of new clinics it opens annually. This is important in its revenue model as shown above, as the bulk of its revenue stems from franchised or managed/owned locations. It must do it this way because the amount of upside can become capped when running allied health service practices such as chiropractic centres. In other words, there are only so many patients that can be seen per hour; only so many clinicians per site can be hired; and only so much that can be charged per consult, effectively placing a ceiling on growth of a single centre. Therefore, in order to expand turnover and beef up the top-line, the best strategy by estimate is ongoing store and franchise openings to drive additional turnover whilst retaining more of the EBIT margin. Thinking a little more laterally as well, if there is a slowdown or recession (depending on how discretionary chiropractic is deemed in a recession), JYNT could sweep up distressed assets at a discount and potentially widen the return on its investment this way. It will be interesting to see management's strategy in that scenario, with unrestricted cash of $9.4 million at the quarter's exit. As seen in Exhibit 5, the company looks well capitalized and at its current cash run rate has more than three years of runway left, by estimation. Exhibit 5. Data: HB Insights Estimates Exhibit 6. Pace of clinic openings integral to JYNT's business model looking ahead

Jul 22
These 4 Measures Indicate That Joint (NASDAQ:JYNT) Is Using Debt Reasonably Well

These 4 Measures Indicate That Joint (NASDAQ:JYNT) Is Using Debt Reasonably Well

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

JYNTUS HealthcareUS Market
7D-0.4%-1.3%-2.5%
1Y-83.6%7.7%-23.2%

Return vs Industry: JYNT underperformed the US Healthcare industry which returned 7.7% over the past year.

Return vs Market: JYNT underperformed the US Market which returned -23.2% over the past year.

Price Volatility

Is JYNT's price volatile compared to industry and market?
JYNT volatility
JYNT Average Weekly Movement8.3%
Healthcare Industry Average Movement7.9%
Market Average Movement6.8%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.8%

Stable Share Price: JYNT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: JYNT's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2010459Peter Holthttps://www.thejoint.com

The Joint Corp. develops, owns, operates, supports, and manages chiropractic clinics. The company operates in two segments, Corporate Clinics and Franchise Operations. It operates through direct ownership, management arrangements, franchising, and regional developers.

Joint Fundamentals Summary

How do Joint's earnings and revenue compare to its market cap?
JYNT fundamental statistics
Market CapUS$227.72m
Earnings (TTM)US$1.72m
Revenue (TTM)US$90.59m

132.7x

P/E Ratio

2.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
JYNT income statement (TTM)
RevenueUS$90.59m
Cost of RevenueUS$9.45m
Gross ProfitUS$81.14m
Other ExpensesUS$79.42m
EarningsUS$1.72m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.12
Gross Margin89.57%
Net Profit Margin1.89%
Debt/Equity Ratio6.6%

How did JYNT perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is JYNT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for JYNT?

Other financial metrics that can be useful for relative valuation.

JYNT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.7x
Enterprise Value/EBITDA28.5x
PEG Ratio2.1x

Price to Earnings Ratio vs Peers

How does JYNT's PE Ratio compare to its peers?

JYNT PE Ratio vs Peers
The above table shows the PE ratio for JYNT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average22.5x
HNGR Hanger
19.6xn/aUS$732.4m
USPH U.S. Physical Therapy
26.1x8.1%US$988.6m
NHC National HealthCare
31.7xn/aUS$981.0m
SEM Select Medical Holdings
12.5x26.8%US$2.8b
JYNT Joint
132.7x63.2%US$227.7m

Price-To-Earnings vs Peers: JYNT is expensive based on its Price-To-Earnings Ratio (132.7x) compared to the peer average (22.5x).


Price to Earnings Ratio vs Industry

How does JYNT's PE Ratio compare vs other companies in the US Healthcare Industry?

Price-To-Earnings vs Industry: JYNT is expensive based on its Price-To-Earnings Ratio (132.7x) compared to the US Healthcare industry average (19x)


Price to Earnings Ratio vs Fair Ratio

What is JYNT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

JYNT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio132.7x
Fair PE Ratio83.2x

Price-To-Earnings vs Fair Ratio: JYNT is expensive based on its Price-To-Earnings Ratio (132.7x) compared to the estimated Fair Price-To-Earnings Ratio (83.2x).


Share Price vs Fair Value

What is the Fair Price of JYNT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: JYNT ($15.71) is trading above our estimate of fair value ($2.19)

Significantly Below Fair Value: JYNT is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Joint forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


63.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JYNT's forecast earnings growth (63.2% per year) is above the savings rate (1.9%).

Earnings vs Market: JYNT's earnings (63.2% per year) are forecast to grow faster than the US market (14.8% per year).

High Growth Earnings: JYNT's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: JYNT's revenue (17.7% per year) is forecast to grow faster than the US market (7.7% per year).

High Growth Revenue: JYNT's revenue (17.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if JYNT's Return on Equity is forecast to be high in 3 years time


Discover growth companies

Past Performance

How has Joint performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


64.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: JYNT has a high level of non-cash earnings.

Growing Profit Margin: JYNT's current net profit margins (1.9%) are lower than last year (24.5%).


Past Earnings Growth Analysis

Earnings Trend: JYNT has become profitable over the past 5 years, growing earnings by 64.3% per year.

Accelerating Growth: JYNT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: JYNT had negative earnings growth (-90%) over the past year, making it difficult to compare to the Healthcare industry average (1.9%).


Return on Equity

High ROE: JYNT's Return on Equity (5.6%) is considered low.


Discover strong past performing companies

Financial Health

How is Joint's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: JYNT's short term assets ($17.7M) do not cover its short term liabilities ($20.2M).

Long Term Liabilities: JYNT's short term assets ($17.7M) do not cover its long term liabilities ($35.5M).


Debt to Equity History and Analysis

Debt Level: JYNT has more cash than its total debt.

Reducing Debt: JYNT's debt to equity ratio has reduced from 24% to 6.6% over the past 5 years.

Debt Coverage: JYNT's debt is well covered by operating cash flow (384.2%).

Interest Coverage: JYNT's interest payments on its debt are well covered by EBIT (25.9x coverage).


Balance Sheet


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Dividend

What is Joint current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Joint Dividend Yield vs Market
How does Joint dividend yield compare to the market?
SegmentDividend Yield
Company (Joint)n/a
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Healthcare)1.4%
Analyst forecast in 3 Years (Joint)n/a

Notable Dividend: Unable to evaluate JYNT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate JYNT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if JYNT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if JYNT's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as JYNT has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

5.8yrs

Average management tenure


CEO

Peter Holt (63 yo)

6.17yrs

Tenure

US$965,046

Compensation

Mr. Peter D. Holt has been Chief Executive Officer of The Joint Corp. since August 11, 2016 and President since January 2017. Mr. Holt served as Interim Principal Financial Officer at The Joint Corp. since...


CEO Compensation Analysis

Peter Holt's Compensation vs Joint Earnings
How has Peter Holt's remuneration changed compared to Joint's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$2m

Mar 31 2022n/an/a

US$4m

Dec 31 2021US$965kUS$417k

US$7m

Sep 30 2021n/an/a

US$18m

Jun 30 2021n/an/a

US$17m

Mar 31 2021n/an/a

US$15m

Dec 31 2020US$829kUS$410k

US$13m

Sep 30 2020n/an/a

US$4m

Jun 30 2020n/an/a

US$3m

Mar 31 2020n/an/a

US$3m

Dec 31 2019US$806kUS$410k

US$3m

Sep 30 2019n/an/a

US$2m

Jun 30 2019n/an/a

US$2m

Mar 31 2019n/an/a

US$1m

Dec 31 2018US$725kUS$409k

US$147k

Sep 30 2018n/an/a

-US$503k

Jun 30 2018n/an/a

-US$727k

Mar 31 2018n/an/a

-US$2m

Dec 31 2017US$445kUS$375k

-US$3m

Sep 30 2017n/an/a

-US$9m

Jun 30 2017n/an/a

-US$11m

Mar 31 2017n/an/a

-US$13m

Dec 31 2016US$509kUS$231k

-US$15m

Compensation vs Market: Peter's total compensation ($USD965.05K) is below average for companies of similar size in the US market ($USD1.69M).

Compensation vs Earnings: Peter's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: JYNT's management team is seasoned and experienced (5.8 years average tenure).


Board Members

Experienced Board: JYNT's board of directors are considered experienced (5.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

NasdaqCM:JYNT Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
29 Sep 22BuyUS$1,146,139Bandera Partners LLCCompany72,467US$16.03
26 Sep 22BuyUS$2,024,648Bandera Partners LLCCompany127,885US$16.04
20 Sep 22BuyUS$692,802Bandera Partners LLCCompany42,327US$16.41
06 Sep 22BuyUS$38,631Bandera Partners LLCCompany2,346US$16.47
14 Jun 22BuyUS$614,269Bandera Partners LLCCompany44,725US$13.86
25 May 22BuyUS$335,272Bandera Partners LLCCompany22,387US$14.98
10 May 22BuyUS$3,714,281Bandera Partners LLCCompany232,815US$16.04
16 Mar 22BuyUS$49,853Peter HoltIndividual1,500US$33.24
16 Mar 22BuyUS$49,995Jake SingletonIndividual1,515US$33.00

Ownership Breakdown

What is the ownership structure of JYNT?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders221,6541.5%
General Public1,132,6917.8%
Hedge Funds2,395,02516.5%
Institutions10,745,67974.1%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 73.7% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
16.52%
Bandera Partners LLC
2,395,025$37.6m11.4%15.23%
15.52%
BlackRock, Inc.
2,249,145$35.3m-0.96%no data
7.75%
The Vanguard Group, Inc.
1,123,368$17.6m5.11%no data
3.35%
Morgan Stanley, Investment Banking and Brokerage Investments
485,840$7.6m60.86%no data
3.11%
State Street Global Advisors, Inc.
450,628$7.1m-8.56%no data
2.85%
Skylands Capital, LLC
412,515$6.5m15.58%1.02%
2.11%
Fred Alger Management, LLC
305,646$4.8m-78.4%0.02%
1.94%
D. E. Shaw & Co., L.P.
280,918$4.4m0%0.01%
1.77%
Geode Capital Management, LLC
256,392$4.0m-1.35%no data
1.73%
Two Sigma Advisers, LP
251,300$3.9m5.68%0.01%
1.72%
Two Sigma Investments, LP
249,560$3.9m7.29%0.01%
1.56%
Deutsche Asset & Wealth Management
226,212$3.6m2516.38%no data
1.43%
Marshall Wace LLP
207,957$3.3m937.4%0.01%
1.4%
General Equity Holdings LP
203,042$3.2m0%3.88%
1.38%
Dimensional Fund Advisors LP
199,839$3.1m-14.36%no data
1.36%
Walleye Capital LLC
197,177$3.1m794.43%0.05%
1.28%
Citadel Advisors LLC
185,258$2.9m348.68%no data
1.19%
Voloridge Investment Management, LLC
172,596$2.7m50.88%0.01%
1.02%
Northern Trust Global Investments
148,567$2.3m-1.7%no data
0.88%
Renaissance Technologies LLC
128,178$2.0m-26.24%no data
0.85%
BNY Mellon Asset Management
123,243$1.9m0.69%no data
0.77%
Alta Fox Capital Management LLC
111,500$1.8m11.5%0.48%
0.75%
AQR Capital Management, LLC
108,173$1.7m160.82%no data
0.73%
Engineers Gate Manager LP
105,718$1.7m17.54%0.06%
0.73%
Federated Hermes, Inc.
105,474$1.7m30.77%0.01%

Company Information

The Joint Corp.'s employee growth, exchange listings and data sources


Key Information

  • Name: The Joint Corp.
  • Ticker: JYNT
  • Exchange: NasdaqCM
  • Founded: 2010
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Implied Market Cap: US$227.717m
  • Shares outstanding: 14.50m
  • Website: https://www.thejoint.com

Number of Employees


Location

  • The Joint Corp.
  • 16767 North Perimeter Drive
  • Suite 110
  • Scottsdale
  • Arizona
  • 85260
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JYNTNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDNov 2014

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/02 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.