One-glance verdict
Undervalued
$7.03 our estimate vs market $2.09
Wall Street consensus: $6.12 (-12.8% lower than our fair-value estimate)
70% below our estimate, below the bear case
Fundamentals snapshot
CareCloud, Inc.
CCLD · NGM · Healthcare · Health Information Services
Current price
$2.09
52-week range
$2.03 - $3.85
Market cap
$88.81M
Balance sheet
Watch
40.06x Strong cushion
Net debt $40.62M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 6.8% last year.
- Reward Returns 21.8% on equity, ahead of 75% of its peers.
- Reward Free cash flow was positive in 7/10 years.
- Risk Stock trades 2.3% above its 5-year average P/E.
What this company does
CareCloud, Inc.
CareCloud provides software and services to help doctors' offices and hospitals manage their business, from digital patient records to the complex process of billing insurance companies. The company makes money by charging for these tools and by running the back-office operations for medical practices, creating a steady stream of recurring revenue (income that is predictable and likely to continue in the future). This allows healthcare providers to focus more on patient care and less on paperwork.
How the company got here
CareCloud started in 1999 as a small business called MTBC, which stood for Medical Transcription Billing Corporation. [3] Initially, it focused on basic services for doctors' offices, like typing up spoken notes and handling billing paperwork. [3] After going public on the stock market in 2014, the company began growing by acquiring (buying) many other smaller healthcare technology companies. [3] A major turning point was in 2020 when it bought a company named CareCloud, and in 2021, MTBC changed its own name to CareCloud because it better reflected its focus on modern, cloud-based healthcare technology. [3, 7]
What it actually does
CareCloud provides software and services that help doctors' offices and hospitals manage their day-to-day operations. [11, 16] Think of it as the digital backbone for a medical practice, handling everything from scheduling appointments and storing patient records to making sure insurance companies pay for treatments. [12, 15] Their tools aim to simplify the complex administrative and financial tasks of running a healthcare business so that doctors and nurses can spend more time with patients. [15, 19] These services are delivered over the internet, often referred to as being "cloud-based," meaning the practice doesn't need to maintain its own complex computer servers. [11]
Healthcare IT
This is CareCloud's largest business, making up the vast majority of its revenue (the money it brings in from sales). [1] This segment provides medical practices with a suite of software tools. [9, 10] Key products include Electronic Health Records (EHR), which is a digital version of a patient's paper chart, and Practice Management software for scheduling and daily tasks. [11] It also includes Revenue Cycle Management (RCM) services, which is the crucial process of managing claims, billing, and payments from insurance companies to ensure the medical practice gets paid for its services. [15]
Medical Practice Management
This is a smaller, more hands-on part of CareCloud's business. [1] Instead of just providing software, this segment offers more comprehensive support services to run a medical practice. [1] This can include providing the physical office space, necessary equipment, medical supplies, and even administrative staff and nurses. [1] Essentially, a doctor or a group of doctors can hire CareCloud to manage the business side of their practice, allowing them to focus purely on treating patients.
What management is betting on now
The company is heavily investing in Artificial Intelligence (AI) to make its software smarter and more automated, reducing the time doctors spend on paperwork. [5, 21] They are also continuing their strategy of growth through acquisitions (buying other companies) to enter new markets and add more healthcare providers to their platform. [19, 21] Finally, CareCloud is focused on expanding its digital health services, especially telehealth (offering appointments with doctors over video), which has become much more common. [12, 14, 20]
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$6.73M
FY2024 Q4
$4.29M
FY2025 Q1
$4.49M
FY2025 Q2
$6.25M
FY2025 Q3
$6.50M
FY2025 Q4
$6.55M
FY2026 Q1
$3.20M
FY2026 Q2
$6.55M
Revenue
$31.88M
Net income
$1.12M
Diluted EPS
0.00
Operating cash flow
$7.07M
Free cash flow
$6.55M
Fetching…
Sources
Revenue
$31.27M
Net income
$922.00K
Diluted EPS
-0.01
Operating cash flow
$3.61M
Free cash flow
$3.20M
Fetching…
Sources
Revenue
$34.42M
Net income
$2.89M
Diluted EPS
0.06
Operating cash flow
$8.68M
Free cash flow
$6.55M
Fetching…
Sources
Revenue
$31.07M
Net income
$3.06M
Diluted EPS
0.04
Operating cash flow
$7.37M
Free cash flow
$6.50M
Fetching…
Sources
Revenue
$27.38M
Net income
$2.90M
Diluted EPS
0.04
Operating cash flow
$7.41M
Free cash flow
$6.25M
Fetching…
Sources
Revenue
$27.63M
Net income
$1.95M
Diluted EPS
-0.04
Operating cash flow
$5.11M
Free cash flow
$4.49M
Fetching…
Sources
Revenue
$28.24M
Net income
$3.30M
Diluted EPS
-0.08
Operating cash flow
$5.23M
Free cash flow
$4.29M
Fetching…
Sources
Revenue
$28.55M
Net income
$3.12M
Diluted EPS
-0.04
Operating cash flow
$7.07M
Free cash flow
$6.73M
Fetching…
Sources
Is it cheap or expensive?
Fair value $7.03 vs current price $2.09
Wall Street consensus is the average analyst price target: $6.12 (-12.8% lower than our fair-value estimate).
Our most-likely fair value is $7.03 a share — about 236.2% above today's price of $2.09, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $40.6M. Interest coverage 40.1x.
Net debt
$40.62M
Interest coverage
40.06x
CareCloud, Inc.'s profit covers its interest bill about 40.1 times over. which is stronger than every peer shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Watch
Worse cushion
Baseline
Better cushion
CCLD
BASELINE
CareCloud, Inc.
Total debt $54.01M Interest coverage 40.06x This is the baseline the peer rows are being compared against.
Total debt $218.81M Interest coverage -3.08x -100% vs CCLD This peer has almost no interest-payment cushion compared with CCLD.
Total debt $67.95M Interest coverage -0.95x -100% vs CCLD This peer has almost no interest-payment cushion compared with CCLD.
Total debt $51.38M Interest coverage -18.01x -100% vs CCLD This peer has almost no interest-payment cushion compared with CCLD.
What you should know
The case for and against CCLD
3 Rewards
1 Risk
Rewards
-
Revenue grew 6.8% last year.
-
Returns 21.8% on equity, ahead of 75% of its peers.
-
Free cash flow was positive in 7/10 years.
Risks
-
Stock trades 2.3% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
29.86x
Forward P/E
4.59x
P/B
5.11x
P/S
0.69x
EV/EBITDA
8.56x
PEG ratio
0.31x
Profitability
How much profit each dollar creates
Gross margin
46.5%
Operating margin
5.7%
Net margin
6.2%
ROE
21.8%
ROA
6.8%
Health
Liquidity and balance-sheet strength
Debt / equity
3.10x
Current ratio
1.02x
Quick ratio
0.92x
Total debt
$54.01M
Total cash
$13.39M
Growth
How the business has been compounding
Revenue TTM
$128.64M
Revenue 5Y CAGR
-3.6%
EPS TTM
0.07
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$26.72M
Free CF TTM
$23.78M
FCF margin
18.5%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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