Hi there,
Skylight Health (formerly CBT) has shifted strategies as of late and has been focusing more on telemedicine. It is a multi-specialty healthcare provider that serves more than 120,000 patients across 14-states in the U.S. It also supports virtual health and has done 20K+ telehealth visits in 2020.
Of note, it is important to distinguish a true technology company from a clinic one. Although Skylight provides virutal health care services and has developed a propriety eRecord platform, it is mainly a clinic operator. It is in strong financial position, with no debt and recently generated positive EBITDA and cash flow. It has a growth through acquisition strategy in which it targets clinics at values between 3 and 7 times EBTIDA. It has a forward revenue run rate of $20M and a pipeline of acquisitions worth $50M.
Based on its forward revenue run rate, it is trading at 7.35 times forward sales. In comparison, fellow health care stocks WELL and DOC are trading at 12 and 8 times revenue run rate. It is important to distinguish however, that WELL and DOC are equally tech and clinic companies, whereas Skylight is more of a clinic based company. IMO, it is why they are deserving of a premium over Skylight. I think JNH is a more direct comparison, but that one is trading at very high valuations. Given all this, I'd say SHG is fully valued and should grow inline with expected growth rates.
This does change, if the company can provide successful in offering their virtual clinical services to the 33M of Americans which are un-insured.
Of note, the company announce da bought deal offering at $1.00 per share, which should provide a floor under the company's tock price. It also provides the company a nice chunk of cash to pursue further acquisitions. Overall, looks like a solid company in the space.
Mat