One-glance verdict
Undervalued
$11.69 our estimate vs market $1.76
Wall Street consensus: $7.33 (-37.3% lower than our fair-value estimate)
85% below our estimate, below the bear case
Fundamentals snapshot
CareCloud, Inc.
CCLD · NGM · Healthcare · Health Information Services
Current price
$1.76
52-week range
$1.69 - $3.81
Market cap
$74.79M
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 0.5% above its 5-year average P/E.
What this company does
CareCloud, Inc.
CareCloud provides technology services to doctors and hospitals to help them manage their patient records, billing, and other administrative tasks. The money they make mainly comes from selling these software and services on a repeating basis, similar to a subscription, which helps give them steady income. This is important because it means they can plan their expenses and investments more reliably.
How the company got here
CareCloud, Inc. started in 1999 as Medical Transcription Billing Corporation (MTBC) by Mahmud Haq, initially focusing on medical transcription and billing services for healthcare providers. Over the years, the company grew and evolved, making numerous acquisitions to expand its offerings. A significant turning point was in 2021 when MTBC officially changed its name to CareCloud, Inc., adopting the name of a company it had acquired the previous year. This rebranding reflected its broader focus on providing comprehensive cloud-based healthcare technology solutions. The company went public on the Nasdaq stock exchange in 2014, allowing it to further invest in growth and technology.
What it actually does
CareCloud provides a suite of technology-enabled services and software for healthcare providers, primarily in the United States. Think of it as a digital toolkit that helps doctors' offices and hospitals run more smoothly. This includes software for managing patient records, scheduling appointments, handling billing and insurance claims, and improving how patients interact with their healthcare providers. They also use advanced technologies like artificial intelligence (AI) to automate tasks and improve efficiency within the healthcare system.
Healthcare Information Technology
This is CareCloud's largest business segment, generating the majority of its revenue. It encompasses a broad range of digital solutions designed to help healthcare providers manage their operations more effectively. This includes electronic health records (EHRs), which are digital versions of patients' paper charts, and practice management (PM) software that helps with scheduling, billing, and administrative tasks. Essentially, this segment provides the core technology infrastructure that healthcare practices use daily to manage patient care and business operations.
Revenue Cycle Management (RCM)
Revenue Cycle Management, or RCM, is a crucial part of how healthcare providers get paid. This segment of CareCloud's business focuses on managing the entire process of patient billing and insurance claims. It starts from verifying a patient's insurance eligibility to submitting claims, following up on payments, and handling any denied claims. The goal is to ensure that healthcare providers are reimbursed accurately and promptly for the services they deliver, which is vital for their financial health.
Patient Experience Management (PXM)
This segment is all about making the patient's journey smoother and more positive. CareCloud's Patient Experience Management tools help healthcare providers improve how patients interact with their practice. This can include things like easy online appointment scheduling, secure messaging with their doctor's office, access to their health information, and timely reminders for appointments. A better patient experience can lead to increased patient satisfaction and loyalty.
Telehealth and Digital Health Solutions
This part of CareCloud's business focuses on enabling virtual healthcare services. Telehealth allows patients to consult with healthcare providers remotely using video calls or other digital means, which is especially useful for routine check-ups or follow-ups. Digital health solutions encompass a broader range of tools that support patient care outside of traditional office visits, such as remote patient monitoring and chronic care management programs, helping providers keep track of patients' health between appointments.
AI-Powered Solutions
CareCloud is increasingly integrating Artificial Intelligence (AI) into its offerings. This segment includes tools like AI-powered clinical documentation assistants that help doctors write patient notes more efficiently, and AI-driven virtual assistants that can handle administrative tasks or answer patient queries. The aim is to use AI to automate repetitive tasks, reduce the administrative burden on healthcare professionals, and provide insights that can improve both clinical decision-making and operational efficiency.
What management is betting on now
CareCloud's leadership is heavily focused on leveraging technology, particularly artificial intelligence (AI), to drive growth and improve efficiency. They are investing in AI-powered solutions to streamline clinical workflows and automate administrative tasks, aiming to reduce costs and enhance the experience for both providers and patients. The company is also pursuing a strategy of disciplined acquisitions to expand its market reach and strengthen its existing offerings, particularly in areas like revenue cycle management. Management's priority is to balance growth with profitability, aiming to increase revenue while maintaining strong financial performance and delivering value to clients.
Price history
How the share price has moved
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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 $11.69 vs current price $1.76
Wall Street consensus is the average analyst price target: $7.33 (-37.3% lower than our fair-value estimate).
Our most-likely fair value is $11.69 a share — about 564.4% above today's price of $1.76, 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 0.5% 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)
29.33x
Forward P/E
3.87x
P/B
4.30x
P/S
0.58x
EV/EBITDA
7.63x
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
0.06
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
0.0%
Payout ratio
0.0%
Last ex-div date
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