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 Analysis

Flawless balance sheet and fair value.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-12.8%

MTBC

1.9%

US Healthcare Services

-2.0%

US Market


1 Year Return

3.2%

MTBC

15.7%

US Healthcare Services

-15.1%

US Market

Return vs Industry: MTBC underperformed the US Healthcare Services industry which returned 15.7% over the past year.

Return vs Market: MTBC exceeded the US Market which returned -15.1% over the past year.


Shareholder returns

MTBCIndustryMarket
7 Day-12.8%1.9%-2.0%
30 Day0.6%-6.4%-19.7%
90 Day28.0%-3.0%-23.2%
1 Year3.2%3.2%16.1%15.7%-13.4%-15.1%
3 Year821.4%821.4%62.7%61.8%10.9%3.7%
5 Year151.7%151.7%37.9%36.6%28.4%14.4%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MTBC ($5.16) is trading below our estimate of fair value ($36.98)

Significantly Below Fair Value: MTBC is trading below fair value by more than 20%.


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 (1.5x) compared to the US Healthcare Services industry average (3.3x).


Next Steps

Future Growth

How is MTBC forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

10.0%

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 (23.7% per year) is forecast to grow faster than the US market (7.1% per year).

High Growth Revenue: MTBC's revenue (23.7% per year) is forecast to grow faster 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?

-7.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MTBC is currently unprofitable.

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 -7% 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 (23.3%).


Return on Equity

High ROE: MTBC has a negative Return on Equity (-2.04%), as it is currently unprofitable.


Next Steps

Financial Health

How is MTBC's financial position?


Financial Position Analysis

Short Term Liabilities: MTBC's short term assets ($31.0M) exceed its short term liabilities ($11.2M).

Long Term Liabilities: MTBC's short term assets ($31.0M) exceed its long term liabilities ($2.4M).


Debt to Equity History and Analysis

Debt Level: MTBC's debt to equity ratio (0.9%) is considered satisfactory.

Reducing Debt: MTBC's debt to equity ratio has reduced from 16.3% to 0.9% 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 84.5x 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 48.7% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

1.5yrs

Average management tenure


CEO

Stephen Snyder (42yo)

2.25s

Tenure

US$1,145,180

Compensation

Mr. Stephen A. Snyder has been Chief Executive Officer of MTBC Inc. since January 2018. Mr. Snyder serves as Director at CareCloud Corporation since 2020. Mr. Snyder served as the President of MTBC Inc. si ...


CEO Compensation Analysis

Compensation vs Market: Stephen's total compensation ($USD1.15M) is above average for companies of similar size in the US market ($USD618.59K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Snyder
CEO & Director2.25yrsUS$1.15m1.68% $1.1m
A. Chaudhry
President & Director1yrUS$704.37k0.45% $285.9k
Bill Korn
Chief Financial Officer6.75yrsUS$862.48k1.15% $734.5k
Norman Roth
Principal Accounting Officer & Controllerno datano data0.42% $270.9k
Shruti Patel
President of Telehealth Division & Director of Compliance0.17yrno datano data
Kimberly Grant
General Counsel1.5yrsno datano data
Rachel Grossinger
Marketing Managerno datano datano data
Loraine Goetsch
Division Presidentno datano datano data
Jonathan Bertman
Chief Medical Officer0.58yrno datano data
Seth Loonan
Chief Revenue Officer of Telehealth Division0.17yrno datano data

1.5yrs

Average Tenure

42yo

Average Age

Experienced Management: MTBC's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Stephen Snyder
CEO & Director2.25yrsUS$1.15m1.68% $1.1m
A. Chaudhry
President & Director1yrUS$704.37k0.45% $285.9k
Anne Busquet
Independent Director5.75yrsUS$190.62k1.47% $937.1k
Howard Clark
Independent Vice Chairman1yrUS$200.62k1.09% $695.6k
Mahmud Haq
Founder & Executive Chairman19.25yrsUS$1.01m37.79% $24.1m
Cameron Munter
Independent Director6.83yrsUS$190.62k1.35% $863.0k
John Daly
Independent Director6.33yrsUS$190.62k0.77% $493.7k

6.3yrs

Average Tenure

65yo

Average Age

Experienced Board: MTBC's board of directors are considered experienced (6.3 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.1%.


Top Shareholders

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$63.800m
  • Shares outstanding: 12.36m
  • 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 company operates through two segments, Healthcare IT and Practice Management. It primarily offers PracticePro, a software-as-a-service platform, which includes practice management software and related tools that facilitate the day-to-day business operation and workflows; electronic health record (EHR), which enables customers to reduce paperwork; revenue cycle management services, such as end-to-end medical billing, analytics, and related services; and mobile health solutions, including smartphone applications that assist patients and healthcare providers in the provision of healthcare services. The company also provides a Web-based EHR solution; healthcare claims clearinghouse services; transcription, coding, indexing, and other ancillary services; electronic data interchange services; and talkEHR, a voice enabled EHR solution. It serves physicians, nurses, nurse practitioners, physician assistants, and other clinical staff that render bills for their services. The company was formerly known as Medical Transcription Billing, Corp. and changed its name to MTBC, Inc. in February 2019. MTBC, Inc. was founded in 1999 and is headquartered in Somerset, New Jersey. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 02:25
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.