The average target price of TOI is 7.0 and suggests 90% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to increase one's position in this instrument in the next 12 months. The most optimistic analyst has a target price of 7.0. This translates into 90% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 7.0. This suggests 90% upside potential. Even the most pessimistic analyst believes there will be stock growth. 

The Oncology Institute, Inc., an oncology company, provides medical oncology services in the United States. Its services include physician services, in-house infusion and dispensary, clinical trial services, outpatient stem cell transplants and transfusions programs, and patient support. The company also offers and manages clinical trial services, such as managing clinical trials, palliative care programs, and stem cell transplants for cancer patients. The company was founded in 2007 and is based in Cerritos, California.

The Oncology Institute, Inc.

Healthcare

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

TOI reported revenue of USD 403mn in the last 12 months, up 2% from FY24. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. Market expects EPS to reach USD -0.36 in FY25.

Over the last six months, the stock performance has varied, with an increase following a drop. The stock's price trend wasn't definitive when matched against its global counterparts from the same sector and industry (as depicted above). Over the past six months the stock has exceeded the performance of this peer group by 381ppts and its growth accelerated by 52ppts in the past month. This is equally valid for peers from the same country and industry. Given the stock's valuation versus its peers, its total price movement is mildly favourable.

The company has reported very poor EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to -11.6% in the last 12 months, up from -22.0% in FY23. 

Historically, TOI has reported very poor net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled -16.0%, a growth from -25.6% in FY23. 

The Oncology Institute, Inc. reported a return on equity (RoE) of -207.3% in the last 12 months, down from -91.4% in FY23. The market consensus projects an RoE of -102.8% in FY24, again behind its peers. 

Another important profitability metric, return on assets (RoA), amounted to -33.6% in the last 12 months, an increase from -34.4% in FY23. The market analysts predict that RoA will be -26.7% in FY24, again weaker than its peers. 

In the last 12 months, the return on capital employed (RoCE) declined to -44.5%, below the peers. The consensus estimate for FY24 for RoCE is -29.5%, again behind the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -6.4 in the past several years. This ratio implies a fragile shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

TOI has below average trading liquidity. The average private investor can sell his common position in the stock in a single trading day. Liquidity is unstable and becomes extremely unfavourable on the days with the lowest activity. However, under highly turbulent market conditions, the trading volume tends to improve significantly. The stock has a small market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is high. Among the negative credit factors, we point to bleak profitability, negligible return on capital, inadequate interest coverage, poor cash flow generation, and an unfavourable capital structure. We note low margin volatility, among the positive credit factors. 

In highly turbulent market conditions, TOI is exceptionally volatile. In other words, the stock will be among the worst-performers in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be critical. 

In normal market circumstances, TOI is exceptionally volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change quite unpredictably. The stock's losses on its worst days (less than 1-5% of the time) will range from critical to immense. 

From both historical and forecast perspectives, the stock is moderately underpriced compared to similar stocks. 

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The Oncology Institute, Inc.

$ 3.65

3

The Oncology Institute, Inc.

$ 3.65

3

Risk factor

Profitability factor

Risk / Profitability

About

About

Risk factor

Profitability factor

$ 3.65

About

About

The Oncology Institute, Inc.

$ 3.65

3

The Oncology Institute, Inc.

$ 3.65

3

Risk factor

Profitability factor

Risk / Profitability

About

About

Risk factor

Profitability factor

$ 3.65

About

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