PIII - P3 Health Partners: Moving In The Right Direction In 2024

2024-06-07 01:28:08 ET

Summary

• P3 Health Partners is collaborating with healthcare providers in five states, providing assistance for compensation.
• The company's revenue has been steadily growing, but has not yet been profitable. However, profitability is expected in 2024.
• The recent announcement of a new CEO may bring renewed attention to PIII stock.

Thesis

P3 Health Partners Inc. (PIII) is operating in the healthcare space, where they are collaborating with healthcare providers in different states in five states, providing them with assistance for a compensation.

P3's revenue has been growing steadily over the past years from $452 million to $1.5 billion, but so far, has not been profitable. Profitability in 2024 is however on the doorstep in light of the company's guidance, and once profitable, I believe the company's valuation should start to look entirely different. Probably for that reason, P3's valuation grade according to all of Seeking Alpha's metrics is A+. With an EV/Sales value of 0.31, I believe P3 is strongly undervalued....

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