CareCloud, Inc.CCLD
NASDAQ • Healthcare
$2.25
P/E
28.27
PEG
—
FCF Yield
—
Rev Growth YoY
+13.2% YoY
Gross Margin
33.2%
Health Score
8/10
D/E Ratio
0.07
Confidence
LOW
Business Snapshot
CareCloud, Inc. operates in the healthcare information services industry, providing technology-enabled solutions such as revenue cycle management, practice management software, and medical billing services to healthcare providers. The company serves a market that is undergoing digital transformation, positioning itself as a niche player focused on cloud-based healthcare IT solutions for smaller to mid-sized medical practices. With TTM revenue of $124.14 million, CareCloud is a micro-cap company offering financial technology solutions to the healthcare sector. A defining characteristic is its capital-light business model, evidenced by a debt/equity ratio of just 0.07x and the ability to generate positive free cash flow of $23.78 million.
Financial Health
Gross margin has improved dramatically to 33.2% from 3.4% in the prior year, a clear sign of a major operational restructuring or shift to higher-margin recurring revenue. Net margin stands at a healthy 8.5%, indicating the company is now converting a meaningful portion of its revenue into profit...
Risk Assessment
- VALUATION — P/E ratio of 28.27x is elevated versus the sector average of 22x, representing a 28% premium that may not be justified if growth continues to decelerate.
- EARNINGS QUALITY — Only 2 out of the last 4 quarters beat earnings estimates, suggesting guidance has not been consistently conservative.
- REVENUE DECELERATION — While annual revenue grew 13.2% YoY, the most recent quarter declined 9.2% sequentially, flagging a potential slowdown in momentum.
- VALUATION DIVERGENCE — The FMP DCF fair value of $0.10 suggests the current price of $2.25 is a 2,150% premium, though this extreme gap implies model assumptions may not reflect the recent margin turnaround.
- 52-WEEK POSITION — The current price of $2.25 is well below the 52-week high of $4.01 and near the low of $1.952, indicating the stock has lost significant value over the past year.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....
Gross margin has improved dramatically to 33.2% from 3.4% in the prior year, a clear sign of a major operational restructuring or shift to higher-margin recurring revenue. Net margin stands at a healthy 8.5%, indicating the company is now converting a meaningful portion of its revenue into profit. The balance sheet is exceptionally conservative with a debt/equity ratio of 0.07x and a current ratio of 1.05x, providing ample near-term liquidity and very limited leverage risk. Free cash flow of $23.78 million is robust relative to the company’s net income of $9.77 million, suggesting strong cash conversion and the ability to self-fund operations or growth investments. Overall, CareCloud is in solid financial health with a fortress-like balance sheet, improving margins, and genuine cash generation that supports organic reinvestment without relying on external financing.
- VALUATION — P/E ratio of 28.27x is elevated versus the sector average of 22x, representing a 28% premium that may not be justified if growth continues to decelerate. - EARNINGS QUALITY — Only 2 out of the last 4 quarters beat earnings estimates, suggesting guidance has not been consistently conservative. - REVENUE DECELERATION — While annual revenue grew 13.2% YoY, the most recent quarter declined 9.2% sequentially, flagging a potential slowdown in momentum. - VALUATION DIVERGENCE — The FMP DCF fair value of $0.10 suggests the current price of $2.25 is a 2,150% premium, though this extreme gap implies model assumptions may not reflect the recent margin turnaround. - 52-WEEK POSITION — The current price of $2.25 is well below the 52-week high of $4.01 and near the low of $1.952, indicating the stock has lost significant value over the past year. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
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