NasdaqGM:MTBC

Stock Analysis Report

Executive Summary

MTBC, Inc., a healthcare information technology company, provides an integrated suite of Web-based solutions and related business services to healthcare providers primarily in the United States.

Snowflake

Flawless balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has MTBC's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MTBC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.6%

MTBC

1.9%

US Healthcare Services

0.9%

US Market


1 Year Return

-21.4%

MTBC

26.5%

US Healthcare Services

16.8%

US Market

Return vs Industry: MTBC underperformed the US Healthcare Services industry which returned 26.5% over the past year.

Return vs Market: MTBC underperformed the US Market which returned 16.8% over the past year.


Shareholder returns

MTBCIndustryMarket
7 Day2.6%1.9%0.9%
30 Day-1.0%4.1%4.5%
90 Day-13.7%-3.3%6.2%
1 Year-21.4%-21.4%26.7%26.5%19.4%16.8%
3 Year319.4%319.4%77.4%76.8%47.5%38.0%
5 Year28.3%28.3%62.1%60.7%62.0%44.1%

Price Volatility Vs. Market

How volatile is MTBC's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is MTBC undervalued compared to its fair value and its price relative to the market?

22.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MTBC ($3.9) is trading below our estimate of fair value ($5.01)

Significantly Below Fair Value: MTBC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MTBC is unprofitable, so we can't compare its PE Ratio to the Healthcare Services industry average.

PE vs Market: MTBC is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MTBC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MTBC is good value based on its PB Ratio (1.3x) compared to the US Healthcare Services industry average (3.8x).


Next Steps

Future Growth

How is MTBC forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

79.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTBC is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: MTBC is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: MTBC is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: MTBC's revenue (5.7% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: MTBC's revenue (5.7% 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 MTBC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has MTBC performed over the past 5 years?

-9.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MTBC has high quality earnings.

Growing Profit Margin: MTBC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MTBC is unprofitable, and losses have increased over the past 5 years at a rate of -9.8% per year.

Accelerating Growth: Unable to compare MTBC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MTBC is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare Services industry (-0.2%).


Return on Equity

High ROE: MTBC has a negative Return on Equity (-4.76%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is MTBC's financial position?


Financial Position Analysis

Short Term Liabilities: MTBC's short term assets ($26.1M) exceeds its short term liabilities ($11.3M)

Long Term Liabilities: MTBC's short term assets ($26.1M) exceeds its long term liabilities (2.8M)


Debt to Equity History and Analysis

Debt Level: MTBC's debt to equity ratio (1.4%) is considered satisfactory.

Reducing Debt: MTBC's debt to equity ratio has reduced from 16.7% to 1.4% over the past 5 years.


Balance Sheet

Inventory Level: MTBC has a low level of unsold assets or inventory.

Debt Coverage by Assets: MTBC's debt is covered by short term assets (assets are 51.6x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable MTBC has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: MTBC is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 103.5% per year.


Next Steps

Dividend

What is MTBC's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage0.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MTBC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of MTBC's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Stephen Snyder (42yo)

1.8yrs

Tenure

US$902,963

Compensation

Mr. Stephen A. Snyder has been Chief Executive Officer of MTBC Inc. since January 2018. Mr. Snyder served as the President of MTBC Inc. since September 2011 to January 1, 2018. Mr. Snyder served as the Chi ...


CEO Compensation Analysis

Compensation vs Market: Stephen's total compensation ($USD902.96K) is above average for companies of similar size in the US market ($USD505.35K).

Compensation vs Earnings: Stephen's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

1.8yrs

Average Tenure

51yo

Average Age

Experienced Management: MTBC's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

5.9yrs

Average Tenure

65yo

Average Age

Experienced Board: MTBC's board of directors are considered experienced (5.9 years average tenure).


Insider Trading

Insider Buying: MTBC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$18,84015 Nov 19
A. Chaudhry
EntityIndividual
Role
Member of the Board of Directors
President & Director
Shares5,000
Max PriceUS$3.78
SellUS$35,70008 Nov 19
John Daly
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$3.57
SellUS$19,46601 Oct 19
John Daly
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$3.90
SellUS$37,00017 Aug 19
John Daly
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares8,000
Max PriceUS$4.65
SellUS$9,40015 Aug 19
John Daly
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$4.70
SellUS$18,68008 Jun 19
A. Chaudhry
EntityIndividual
Role
Member of the Board of Directors
President & Director
Shares4,000
Max PriceUS$4.67
SellUS$32,24001 Jun 19
John Daly
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,600
Max PriceUS$4.90
SellUS$45,20030 Mar 19
John Daly
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$4.52
SellUS$79,63130 Mar 19
A. Chaudhry
EntityIndividual
Role
Member of the Board of Directors
President & Director
Shares17,935
Max PriceUS$4.44
SellUS$48,37530 Mar 19
Shruti Patel
EntityIndividual
Role
Chief Legal Officer
General Counsel & Corporate Secretary
Shares10,750
Max PriceUS$4.50
SellUS$136,09729 Nov 18
Stephen Snyder
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares27,005
Max PriceUS$5.04

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.9%.


Management Team

  • Mahmud Haq (60yo)

    Founder & Executive Chairman

    • Tenure: 18.8yrs
    • Compensation: US$867.04k
  • Bill Korn (62yo)

    Chief Financial Officer

    • Tenure: 6.3yrs
    • Compensation: US$720.74k
  • Stephen Snyder (42yo)

    CEO & Director

    • Tenure: 1.8yrs
    • Compensation: US$902.96k
  • Loraine Goetsch

    Division President

    • Tenure: 0yrs
  • Jon Bertman

    Chief Medical Officer

    • Tenure: 0.2yrs
  • A. Chaudhry (42yo)

    President & Director

    • Tenure: 0.6yrs
  • Norman Roth (63yo)

    Principal Accounting Officer & Controller

    • Tenure: 0yrs
  • Shruti Patel (31yo)

    General Counsel & Corporate Secretary

    • Tenure: 3yrs
  • Rachel Grossinger

    Marketing Manager

    • Tenure: 0yrs
  • Kim Grant

    Chief Compliance Officer

    • Tenure: 0.8yrs

Board Members

  • Anne Busquet (69yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$136.75k
  • Howard Clark (75yo)

    Vice Chairman & Director

    • Tenure: 0.6yrs
    • Compensation: US$146.75k
  • Mahmud Haq (60yo)

    Founder & Executive Chairman

    • Tenure: 18.8yrs
    • Compensation: US$867.04k
  • Stephen Snyder (42yo)

    CEO & Director

    • Tenure: 1.8yrs
    • Compensation: US$902.96k
  • Cameron Munter (65yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: US$136.75k
  • John Daly (81yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$136.75k
  • A. Chaudhry (42yo)

    President & Director

    • Tenure: 0.6yrs

Company Information

MTBC, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MTBC, Inc.
  • Ticker: MTBC
  • Exchange: NasdaqGM
  • Founded: 1999
  • Industry: Health Care Technology
  • Sector: Healthcare
  • Market Cap: US$47.655m
  • Shares outstanding: 12.22m
  • Website: https://www.mtbc.com

Number of Employees


Location

  • MTBC, Inc.
  • 7 Clyde Road
  • Somerset
  • New Jersey
  • 8873
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MTBCNasdaqGM (Nasdaq Global Market)YesCommon SharesUSUSDJul 2014
MTBDB (Deutsche Boerse AG)YesCommon SharesDEEURJul 2014
MTBC.PNasdaqGM (Nasdaq Global Market)11% CUM PFD CL AUSUSDNov 2015

Biography

MTBC, Inc., a healthcare information technology company, provides an integrated suite of Web-based solutions and related business services to healthcare providers primarily in the United States. The compan ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 00:42
End of Day Share Price2019/11/19 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.