JOINT CORP Announces 10.8% Year-Over-Year Revenue Increase to USD 29.5 Million in FY2023 Q3 Earnings Results

☀️Earnings Overview

JOINT CORP ($NASDAQ:JYNT) announced their FY2023 Q3 earnings results on November 9 2023, with total revenue increasing by 10.8% year-over-year to USD 29.5 million. Despite this, net income for the quarter was USD -0.72 million, down from 0.49 million in the same period of the previous year.

Analysis

GoodWhale’s analysis of JOINT CORP‘s fundamentals reveals that the company is classified as a ‘cheetah’, which means it has achieved high revenue and earnings growth but is considered to be less stable due to lower profitability. This type of company may be attractive to certain types of investors who want to capitalize on the growth potential despite the risks associated with it. Specifically, JOINT CORP is strong in growth, medium in assets, profitability and weak in dividend. Although it is not a good option for dividend-seeking investors, it has a high health score of 8/10, indicating that considering its cash flows and debt, the company is capable of sustaining future operations during times of crisis. Therefore, it may be an attractive proposition for investors who are looking for long-term growth potential and are willing to take on the associated risks. More…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Joint Corp. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Joint Corp. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Joint Corp. More…

Key Ratios Snapshot

Some of the financial key ratios for Joint Corp are shown below. More…

Peers

The Joint Corp is a publicly-traded company that owns and operates chiropractic clinics in the United States. The company was founded in 1999 and is headquartered in Scottsdale, Arizona. The Joint Corp’s main competitors are Ethema Health Corp, PT Sejahteraraya Anugrahjaya Tbk, and Ensign Group Inc.

– Ethema Health Corp ($OTCPK:GRST)

Ethema Health Corp is a healthcare company with a focus on providing services to the underserved population. The company has a market cap of 1.86M as of 2022 and a Return on Equity of -25.22%. The company’s mission is to provide quality healthcare to those who need it the most. Ethema Health Corp has a strong commitment to social responsibility and provides services to the community through its clinics, mobile units, and outreach programs. The company has a long history of serving the underserved and is dedicated to providing quality care to its patients.

– PT Sejahteraraya Anugrahjaya Tbk ($IDX:SRAJ)

Pt Sejahteraraya Anugrahjaya Tbk is an Indonesian company that focuses on the construction and engineering sector. The company has a market cap of 1.54T as of 2022 and a return on equity of 2.06%. The company has been involved in various large-scale construction projects in Indonesia, such as the construction of the Jakarta-Cikampek Toll Road and the Trans-Java Toll Road.

– Ensign Group Inc ($NASDAQ:ENSG)

The Ensign Group is a holding company for a number of healthcare service providers. Its operations are primarily in the United States, with a focus on skilled nursing and assisted living facilities. The company also provides home health, hospice, and senior living services.

Ensign has a market cap of 4.77B as of 2022. Its return on equity is 19.3%. Ensign’s focus on skilled nursing and assisted living facilities gives it a strong position in the healthcare services industry. The company’s size and scale give it the ability to provide a wide range of services to its customers. Ensign’s focus on quality care and customer service is evident in its high return on equity. Ensign is a well-run company that is well-positioned to continue growing in the healthcare services industry.

Summary

Investors in JOINT CORP had some cause for concern after the company reported its FY2023 Q3 earnings results on November 9. Total revenue for the quarter was up 10.8%, but net income was down significantly year-over-year, from 0.49 million to -0.72 million. As a result, the stock price dropped on the same day.

Despite the disappointing earnings, investors should still view the company favorably given its overall revenue growth. It will be important to keep an eye on the company’s bottom line going forward as it works to increase profits.