Healthcare Triangle, Inc. (HCTI) Stock Analysis
Healthcare Triangle, Inc. (HCTI) Stock Analysis
Overall Grade: F (Concerning)
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Healthcare Triangle, Inc. faces challenges in financial performance that warrant careful analysis.
Key Metrics:
| Metric | Value | Context |
|---|---|---|
| ROIC | -130.7% | Below expectations |
| FCF Margin | -81.1% | Cash flow pressure |
Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.
What is Healthcare Triangle, Inc.'s Profitability and ROIC?
Healthcare Triangle, Inc.'s return on invested capital of -130.7% is below the typical cost of capital. Gross margin of 8276.9% with operating margin at -45.2% reflects the company's strong market position.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -130.7% | Red flag | Below cost of capital |
| Return on Equity (ROE) | -141.5% | Red flag | Moderate equity returns |
| Gross Margin | 8276.9% | Excellent | Strong pricing power |
| Operating Margin | -45.2% | Warning | Moderate operational efficiency |
How Strong is Healthcare Triangle, Inc.'s Cash Flow Quality?
Healthcare Triangle, Inc. generated $-10.5M in free cash flow over the trailing twelve months, representing a -81.1% margin. Cash earnings quality is strong, with operating cash flow exceeding net income by 1.7x.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Free Cash Flow Margin | -81.1% | Red flag | Thin cash margins |
| Free Cash Flow (TTM) | $-10.5M | Red flag | Cash burn |
| OCF/Net Income | 1.7x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
What is Healthcare Triangle, Inc.'s Financial Health?
Healthcare Triangle, Inc. maintains a net cash position of $99000, providing significant financial flexibility.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Net Cash Position | $99000 | Excellent | Net cash positive |
Is Healthcare Triangle, Inc. Stock Overvalued or Undervalued?
Healthcare Triangle, Inc. trades at a P/E of 0.0x, representing a premium to the sector median of N/A. Free cash flow yield of -42.4% reflects market expectations for growth.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| P/E Ratio | 0.0x | Adequate | Reasonable valuation |
| EV/Sales | 1.8x | Excellent | Attractive revenue multiple |
| FCF Yield | -42.4% | Warning | Lower cash yield |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -130.7% | Top 5% | -20.2x below |
| Free Cash Flow Margin | -81.1% | Bottom 10% | -8.1x below |
| Gross Margin | 8276.9% | Top 5% | 156.4x above |
| Operating Margin | -45.2% | Top 5% | -7.2x below |
| Return on Equity (ROE) | -141.5% | Top 5% | -22.7x below |
| P/E Ratio | 0.0x | N/A | - |
Rating Thresholds
Return on Invested Capital (ROIC)
Measures how efficiently a company uses its debt and equity capital to generate profits. ROIC above 15% typically indicates a competitive moat.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Exceptional capital efficiency, strong competitive moat |
| Good | 12% - 20% | Above-average returns, sustainable competitive position |
| Adequate | 8% - 12% | Around cost of capital, moderate competitive position |
| Warning | 4% - 8% | Below cost of capital, value may be eroding |
| Red flag | < 4% | Significant capital destruction, fundamental issues |
Current: -130.7% (Red flag - Top 5% of sector (median: 6.5%))
Free Cash Flow Margin
The percentage of revenue converted to free cash flow. Higher margins indicate stronger cash generation and business quality.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Strong cash generation, high-quality business |
| Good | 10% - 20% | Healthy cash conversion |
| Adequate | 5% - 10% | Moderate cash generation |
| Warning | 0% - 5% | Thin cash margins, capital intensive |
| Red flag | < 0% | Cash burn, potential liquidity concerns |
Current: -81.1% (Red flag)
Gross Margin
Revenue minus cost of goods sold as a percentage. Higher gross margins indicate pricing power and competitive advantage.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 50% | Strong pricing power and competitive moat |
| Good | 30% - 50% | Healthy margins, differentiated product |
| Adequate | 20% - 30% | Moderate margins, competitive industry |
| Warning | 10% - 20% | Thin margins, commodity-like business |
| Red flag | < 10% | Very thin margins, structural challenges |
Current: 82.8x (Excellent - Top 5% of sector (median: 52.9%))
P/E Ratio (Price-to-Earnings)
Stock price divided by earnings per share. Lower P/E may indicate undervaluation, while higher P/E suggests growth expectations.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | < 15x | Attractively valued, potential opportunity |
| Good | 15x - 25x | Fair value for quality company |
| Adequate | 25x - 35x | Growth premium, justify with earnings growth |
| Warning | 35x - 50x | High expectations priced in |
| Red flag | > 50x or negative | Speculative valuation or losses |
Current: 1.2% (Adequate)
Free Cash Flow Yield
Free cash flow per share divided by stock price. Higher FCF yield indicates better cash return relative to valuation.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 8% | High cash return, potential value opportunity |
| Good | 5% - 8% | Solid cash yield |
| Adequate | 3% - 5% | Moderate cash return |
| Warning | 1% - 3% | Low cash yield, growth expectations |
| Red flag | < 1% | Minimal cash return to shareholders |
Current: -42.4% (Red flag)
Frequently Asked Questions
Q: What is Healthcare Triangle, Inc.'s Return on Invested Capital (ROIC)?
Healthcare Triangle, Inc. (HCTI) has a trailing twelve-month Return on Invested Capital (ROIC) of -130.7%. This compares below the sector median of 6.5%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is Healthcare Triangle, Inc.'s Free Cash Flow Margin?
Healthcare Triangle, Inc. (HCTI) has a free cash flow margin of -81.1%, generating $-10.5 million in free cash flow over the trailing twelve months. Negative free cash flow means the company is consuming cash, which may require financing.
Q: Is Healthcare Triangle, Inc. stock overvalued or undervalued?
Healthcare Triangle, Inc. (HCTI) trades at a P/E ratio of 0.0x, which is above the sector median of N/A. The EV/Sales multiple is 1.8x.
Q: What is Healthcare Triangle, Inc.'s revenue and earnings growth?
Healthcare Triangle, Inc. (HCTI) declined revenue by 21.9% year-over-year. Net income grew by 34.0% year-over-year. Revenue decline may indicate market challenges or industry headwinds.
Q: How does Healthcare Triangle, Inc. compare to competitors in Technology?
Compared to other companies in Technology, Healthcare Triangle, Inc. (HCTI) shows: ROIC of -130.7% is below the sector median of 6.5% (Top -770%). FCF margin of -81.1% trails the sector median of 10.0%. Gross margin at 8276.9% is 8224 percentage points higher than sector peers. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.
Q: What warning signs should I watch for with Healthcare Triangle, Inc.?
Investors in Healthcare Triangle, Inc. (HCTI) should monitor these potential warning signs: 1) FCF margin is thin at -81.1%, leaving limited buffer for economic downturns. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-11-13. TTM metrics as of Q3 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
This analysis is for informational purposes only and does not constitute investment advice.