Healthcare Triangle (Healthcare Triangle) Predictability Rank

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What is Healthcare Triangle Predictability Rank?

Not Rated

Warren Buffett said many times that the companies he likes are:

1. Simple businesses that he understands
2. that have predictable and proven earnings and
3. with economic moat
4. those can be bought at a reasonable price.

It is hard to quantify "simple businesses that he (Buffett) understands", so we will focus on the other three characteristics instead. In GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank, we will show that the businesses that have predictable and proven earnings are usually also simple businesses that an average person could understand.

GuruFocus conducted a back test study of Warren Buffett's strategy of "buying good companies at fair prices" for the years from 1998-2008.

Healthcare Triangle Predictability Rank Calculation

In our database there are 2403 stocks that have been traded from Jan. 2, 1998 to Aug. 31, 2008. We have the complete 10-year financial data and trading prices of these companies for this period. We rank the predictability of these companies based on the consistency of their revenue per share and EBITDA (earning before interest, tax, depreciation and amortization) per share over the past ten fiscal years, and study the correlation between the stock performances and the predictability of the business.

Our study may be subject to these biases and assumptions:

Dividend yields are not counted for investment returns
Effects of price changes due to spin-offs may not be fully adjusted
Study is subjected to survivorship bias due to de-listing, bankruptcy, LBO, M&A, etc.

The correlation between business predictability and investment returns of a company is showed below.

Correlation Between Business Predictability and Investment Returns

	Predictables	Non-Predictable	All stocks
Total Number of stocks	570	1833	2403
Total Lost Money	61	830	891
Total Lost More Than 50%	18	412	430
Total Lost More Than 90%	4	86	90
Average Gain	260.6%	100.0%	138.1%
Median Gain	150.0%	13.0%	39.0%
Maximum Gain	2852.0%	11483.0%	11483.0%
Maximum Loss	-100.0%	-100.0%	-100.0%
Annualized Average Gain	12.7%	6.7%	8.4%
Annualized Median Gain	8.9%	1.1%	3.1%

For the 570 predictable companies, we have seen strong correlation between the predictability of businesses and the stock performances over the past 10 years, regardless of the valuation of business at 1998. Accordingly, we have ranked the business predictability from 5-star to 1-star, as shown in this table.

Predictability Rank	5-Star	4.5-Star	4-Star	3.5-Star	3-Star	2.5-Star	2-Star	1-Star (non-predictable)	Average among all
% Out of All 2403 Stocks	3.3%	2.9%	3.7%	3.3%	3.3%	3.7%	3.3%	76.3%	100%
% that are in Loss (10y)	3%	10%	8%	9%	11%	18%	16%	45%	37%
Average Gain (10y)	364.6%	330.9%	278.0%	235.1%	243.5%	227.8%	154.8%	100.0%	138.1%
Median Gain (10y)	238.5%	193.5%	171.0%	159.0%	132.5%	113.5%	87.0%	13.0%	39.0%
Maximum Gainer	2228.0%	2547.0%	2452.0%	2852.0%	2432.0%	1892.0%	1807.0%	11483.0%	11483.0%
Maximum Loser	-82.0%	-53.0%	-67.0%	-100.0%	-83.0%	-100.0%	-78.0%	-100.0%	-100.0%
Annualized Average Gain	15.4%	14.6%	13.2%	12.0%	12.2%	11.7%	9.1%	6.7%	8.4%
Annualized Median Gain	12.1%	10.6%	9.8%	9.3%	8.2%	7.3%	6.0%	1.1%	3.1%

For detailed information about each predictability rank, please go to GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank

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Healthcare Triangle (Healthcare Triangle) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Healthcare Triangle Inc (NAS:HCTI) » Definitions » Predictability Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

7901 Stoneridge Drive, Suite 220, Pleasanton, CA, USA, 94588

Website

https://www.healthcaretriangle.com

Healthcare Triangle Inc is a healthcare information technology company focused on advancing industry-transforming solutions in the sectors of cloud services, data science, and professional and managed services for the healthcare and life sciences industry. It reinforces healthcare progress through technology and extensive industry know-how. HTI support healthcare providers and payors, hospitals and Pharma Life Sciences organizations in their effort to improve health outcomes by enabling the adoption of new technologies, data enlightenment, business agility and accelerate responding to immediate business needs and competitive threats. It provides services under three operating segments which are Software Services, Managed Services and Support and Platform Services.

Executives

Roy Sookhoo	director	7901 STONERIDGE DR., SUITE 220, PLEASANTON CA 94588
Ronald W. Mcclurg	director	C/O NEUROONE MEDICAL TECHNOLOGIES CORP, 7599 ANAGRAM DR, EDEN PRAIRIE MN 55344
Paige Heaphy	director	7901 STONERIDGE DR., SUITE 220, PLEASANTON CA 94588
Mohammad Jainal Bhuiyan	director	10605 SW 44TH CT, DAVIE FL 33328
Jeffrey S Mathiesen	director	43334 SEVEN MILE RD., SUITE 1000, NORTHVILLE MI 48167
Shibu Kizhakevilayil	director	4309 HACIENDA DRIVE, SUITE 150, PLEASANTON CA 94588
April Bjornstad	director	7901 STONERIDGE DRIVE, SUITE 220, PLEASANTON CA 94588
Thyagarajan Ramachandran	officer: Chief Financial Officer	4309 HACIENDA DR., SUITE 150, PLEASANTON CA 94588
Brendan Gallagher	director	4309 HACIENDA DR., SUITE 150, PLEASANTON CA 94588
James Michael Gill	officer: Vice President, Finance	4309 HACIENDA DR., SUITE 150, PLEASANTON CA 94588
Mogli Sudish	officer: Chief Technology Officer	4309 HACIENDA DRIVE, SUITE 150, PLEASANTON CA 94588
Vivek Prakash	director	4309 HACIENDA DRIVE, SUITE 150, PLEASANTON CA 94588
Securekloud Technologies, Inc.	10 percent owner	401 RYLAND ST, STE 200-A, RENO NV 89502
Lakshmanan Kannappan	director	4309 HACIENDA DRIVE, SUITE 150, PLEASANTON CA 94588
Anand Kumar	officer: Vice President, Sales	4309 HACIENDA DR., SUITE 150, PLEASANTON CA 94588