Benchmark has significantly increased the price target for Nutex Health (NUTX, Financial) from $150 to $300, maintaining a Buy rating. This decision comes in the wake of the company's outstanding first-quarter results and beneficial updates to its financial model. The firm highlights enhanced clarity regarding the continuation of successful rate arbitration outcomes, leading to a substantial upward revision of its revenue, adjusted EBITDA, and GAAP EPS forecasts for FY25 and FY26. Nutex remains a strong recommendation under Benchmark's "Best Idea" category, reflecting the firm's confidence in the company's growth potential.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for Nutex Health Inc (NUTX, Financial) is $102.00 with a high estimate of $150.00 and a low estimate of $56.00. The average target implies an downside of 35.77% from the current price of $158.80. More detailed estimate data can be found on the Nutex Health Inc (NUTX) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, Nutex Health Inc's (NUTX, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Nutex Health Inc (NUTX, Financial) in one year is $63.54, suggesting a downside of 59.99% from the current price of $158.8. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Nutex Health Inc (NUTX) Summary page.
NUTX Key Business Developments
Release Date: April 01, 2025
- Total Revenue: $479.9 million for 2024, up 94% from $247.6 million in 2023.
- Adjusted EBITDA: Increased from $10.8 million in 2023 to $123.7 million in 2024, up over 1,000%.
- Net Income: $52 million for 2024 compared to a loss of $46 million in 2023.
- Patient Volume: Increased by 17% from 144,000 in 2023 to 168,000 in 2024.
- Long-term Debt: Current portion increased from $10.8 million in 2023 to $14 million in 2024; net long-term debt decreased from $26 million in 2023 to $22 million in 2024.
- Fourth-Quarter Revenue: $257.6 million, up 270% from $69.7 million in Q4 2023.
- Fourth-Quarter Net Income: $61.7 million compared to a net loss of $31.6 million in Q4 2023.
- Cash and Cash Equivalents: $44 million at the end of 2024, up from $22 million in 2023.
- Accounts Receivable: $232 million at the end of 2024, up from $58.6 million in 2023.
- Cash Flow from Operating Activities: Increased to $23.2 million in 2024 from $1 million in 2023.
- Hospital Network: Expanded to 24 hospitals across 11 states in 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Nutex Health Inc (NUTX, Financial) reported a significant revenue increase of 94% for the full year of 2024, reaching $479.9 million compared to $247.6 million in 2023.
- The company's adjusted EBITDA saw a remarkable growth of over 1,000%, rising from $10.8 million in 2023 to $123.7 million in 2024.
- Net income for 2024 was $52 million, a substantial improvement from a loss of $46 million in 2023.
- Patient volume increased by 17% in 2024, with mature hospitals contributing 6.5% to this growth.
- Nutex Health Inc (NUTX) successfully opened four new hospitals in 2024, expanding its network to 24 hospitals across 11 states.
Negative Points
- The implementation of the No Surprises Act (NSA) has negatively impacted revenue per patient reimbursement, with insurer payments for emergency services dropping by roughly 30%.
- The arbitration process, while beneficial, is costly, labor-intensive, and time-consuming, posing a financial and operational burden.
- Despite the opening of new hospitals, the current portion of long-term debt increased from $10.8 million in 2023 to $14 million in 2024.
- The arbitration process requires significant upfront costs, including Medicare administrative fees and arbitrator fees, which can be a financial strain.
- The company faces challenges in maintaining low costs and aggressive debt management amidst expansion and operational adjustments.
