Nobilis Health Corp. Growth
Northstar healthcare Inc. , based in Houston, Texas, as of December 5th, 2014 changed it’s name to Nobilis Health Corp. as part of the expansion in the U.S. capital markets. They started this to avoid confusion by companies and funds using the “Northstar” name in the stock market in the United States.
Nobilis Health is a healthcare facility and marketing firm. They manage ten healthcare facilities in both Texas and Arizona, an urgent care center, two MRI centers, and six ambulatory surgical centers. They also have marketing relationships with sixteen other surgical centers in the United States.
It is a publicly owned company with patient lead management and direct-to-consumer
marketing. Nobilis has an extensive physician partnership of specialists including pain management, spine surgery, orthopedic surgery, ect.
The company has great growth potential for shareholders. Mackee Research Capital analyst Russel Stanley predicted a target price of twelve dollars and fifty cents in one year at the time of publication. That’s a seventy-two percent return rate. He gave credit to Nobilis as an undervalued play on increasing demands for surgical procedures from the aging population and increased numbers of obesity.
In 2014, Nobilis Health, then Northstar healthcare, saw rapid growth and record revenue of over seventeen million in the third quarter. Harry Fleming, the president of the company, claimed they would remain aggressive in their expansion and enhancement of new and existing market programs to maximize profitability and value for their shareholders in the fourth quarter and into 2015. Their net patient service revenue for the third quarter of 2014 was an increase of nine and one half million dollars or 125 percent increase from the seven million from the previous period. Nobilis has been expanding and gaining revenue since that time.
Cash flows provided for operating activities for the third quarter ending September 30, 2014 were 2.2 million dollars, an increase of 2 million dollars from the same period last year. The 2014 records prove that Nobilis health corp. is only increasing in it’s profitability and will be expanding in the future.
On April 2, 2015 Nobilis closed a 25 million dollar debt financing facility with GE capital, healthcare financial facilities, for the benefit of decreasing their borrowing costs and streamlining their capital structure. This deal will provide another catalyst for the anticipated growth through 2015. Chris Lloyd, CEO of Nobilis Health, says this has met one of their goals for growth and keeping their borrowing costs down. The interest is only 4 percent as opposed to the average borrowing cost of 9 percent.
Zacks has given the company a short term rank buy of 2. This is compared to a 1 rank from one broker. Analysts from Zacks have rated Nobilis as a strong buy. The target price per share was ten dollars but the shares have dropped to five dollars forty-three cents. The share prices have risen over 375 percent in just one year.
Nobilis has a bright future ahead and increased plans for expansion. The steady rise of profitability ensures share holders a safe and profitable long term investment.