TRHC

Tabula Rasa HealthCare Inc

Healthcare


Presented:12/11/2018
Price:$75.41
Cap:$1.54B
Current Price:$10.50
Cap:$0.28B

Presented

Date12/11/2018
Price$75.41
Market Cap$1.54B
Ent Value$1.82B
P/E RatioN/A
Book Value$4.79
Div Yield0%
Shares O/S20.47M
Ave Daily Vol332,149
Short Int8.58%

Current

Price$10.50
Market Cap$0.28B
Tabula Rasa Healthcare, Inc. engages in the development of pharmaceutical software that optimizes medication regimens. It offers cloud-based applications, such as EireneRx and MedWise Advisor. The company was founded by Calvin H. Knowlton and Orsula V. Knowlton in April 2009 and is headquartered in Moorestown, NJ.

Publicly traded companies mentioned herein: CVS Health Corp (CVS), Omnicell Inc (OMCL), Tabula Rasa HealthCare Inc (TRHC)

Highlights

The presenter is short shares of Tabula Rasa (TRHC) and sees the business as “fundamentally misunderstood.” While a catalyst for a material move lower is “hard to pin down” at this time, expectations and market multiples are too high. At ~$75, the stock trades at over 40x EBITDA and 78x earnings (both on Street estimates for 2019). The provider of institutional pharmacy services came public in late Sept 2016 and has since benefitted from the deterioration of Omnicare inside of CVS. In his opinion, the Street is giving the company too much credit for a SaaS story surrounding its ability to help plans manage Part D spending, when it is simply a somewhat tech-enabled institutional pharmacy business that should trade at closer to 20x (or $31/share).

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Idea Discussion

Commentor 1 - 2 weeks ago

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