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  5. DNTL: Comments on the second Q please. [dentalcorp Holdings Ltd. Subordinate Voting Shares]
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Q: Comments on the second Q please. Is it worth to buy, hold, sell or watch list?

Thanks
Asked by Daniel on August 09, 2023
5i Research Answer:

For the second quarter of 2023, DNTL reported revenue of $368.3 million, an increase of 12.6% year-over-year, beating estimates of $360.1 million. Adjusted EBITDA of $67 million rose 10.9% compared to the same quarter of 2023 with an adjusted EBITDA margin of 18.2%. Adjusted EBITDA came in ahead of estimates of $65.9 million. The same practice EBITDA growth of the last twelve months came in at 5.1%, and adjusted EBITDA growth from acquisitions completed came in at 19.3%. Management expects the same practice revenue growth to come in between 5% to 6% over the third quarter and revenues to increase by 9.5% to 10.5%. Adjusted EBITDA margins are expected to remain consistent with the first half of 2023. Trading at 18.2x forward earnings and with solid growth prospects, the stock is getting interesting.