Quipt Home Medical: A New Generation Medical Equipment Supplier

While medical devices as an industry witnessed a drop in demand during the pandemic, there has been one part of its umbrella that gained strong momentum across the globe – home medical devices. With hospitals filled with Covid-19 patients, a large number of non-Covid patients were forced to stay at home and arrange for the relevant medical equipment which led to a huge demand for at-home device offerings. As a matter of fact, there was also a particularly high demand for various equipment like oxygen concentrators at home for Covid patients who were not hospitalized over the past year. Our small cap pick for the day is one of the most heavily undervalued companies within the home medical devices space that operates on a subscription model and has terrific growth potential – Quipt Home Medical Corp (NASDAQ:QIPT).

Company Overview

Quipt Home Medical is a premium medical equipment supplier company that provides in-home monitoring equipment, daily and ambulatory aides, oxygen therapy, sleep apnea treatment, home ventilation, and respiratory equipment rentals across the United States. Headquartered in Wilder, Kentucky, the company delivers nearly 250000 pieces of equipment every year to a network of more than 17000 referring physicians. It operates on a subscription-based revenue model that provides initial equipment supply and implementation to thousands of patients every year. In addition, they also deal with periodical resupply of orders for patients throughout the year. Significant technological investment in the Quipt platform has let the company offer exceptional services to its patients. This unique technology also serves as a major differentiating factor between Quipt and its competitors. Quipt’s innovative platform has also simplified the DME delivery process which in turn helped Quipt in winning market share over the last few years.

DME Ordering and Delivery Process

Quipt’s innovative platform leverages technology as well as strong regional distribution to simplify all the phases of the Durable Medical Equipment (DME) delivery process. This has allowed Quipt to operate a successful business model that is truly patient centric. This approach helped physicians to improve the clinic efficiency without neglecting the patient’s health. The DME delivery process is very reliable, easy, and quick. It starts with Quipt’s field sales team and ends with successful collection by the revenue cycle team of Quipt. Continue reading to know the process. Quipt’s sales representatives call on the physicians, hospitals, rehab centres, and long-term care to give them an overview about their equipment. When the physician and/or clinical staff order the device, they get a confirmation from the company’s end. Then they submit all the necessary details to Quipt’s customer service centre. The customer service team obtains authorization as well as verifies the patient benefits. After that, the certified respiratory therapists and technicians of Quipt ensure a successful delivery of the prescribed equipment to the patient. They also provide proper in-house training to educate the patient about the equipment. After that the revenue team processes all the required documentation and paperwork for billing and also manages the final collection. Quipt’s ordering platform integrates all aspects of the ordering procedure to ensure an exceptional patient satisfaction.

Organic Growth Metrics

With an estimated 10000 people turning 65 every day in the next 15 years, the current size of the DME industry represents only a small part of what it will become in the next few years. Why? Because the oxygen utilization among patients 65 and over will continue to increase, especially among COPD (Chronic Obstructive Pulmonary Disease) patients which as a demographic has shown an increase of 15 percent in the last five years. According to the ASAS (American Sleep Apnea Association), sleep disorders such as sleep apnea will become a significant health issue in the United States as the number of sleep apnea patient has increased by nearly 70% over the past few years. Studies have also revealed that 22 million Americans suffer from sleep apnea, with 80% diagnosed with moderate and severe obstructive sleep apnea. As per some other studies, from 2015-2030, it is estimated that the number of chronic diseases apart from sleep apnea will increase by 171% to over 83 million American. This indicates a huge potential market for Quipt and its offerings.

Quipt’s Strong Market Positioning

Quipt has focused on expanding its product offering through an optimum care to establish broad-based touch points within the referring healthcare institutions and physicians. With a proven track record of performing strategic, cumulative acquisitions, the management believes that it is exclusively positioned to capture on two exceptional dynamics – its cutting-edge technology and its telehealth training program. Quipt’s strength lies in its commitment to technology. Over the last several years, the company has spent significant investments streamlining its existing systems to create a sophisticated and interconnected infrastructure. With respect to its telehealth training program, it represents the initial patient set up and an ongoing training through a drop shipment platform or telemedicine platform. It serves to increase the patient compliance and also accelerate patient onboarding. In addition, it helps to significantly reduce improper equipment use and the onboarding costs. The combination of these 2 dynamics is bound to propel the demand for Quipt’s offerings and also catalyse its stock price growth in the coming months.

Final Thoughts

As we can see in the above chart, Quipt’s stock has followed an upward trajectory but it continues to be heavily undervalued in comparison to the industry averages. The company is currently trading at an Enterprise Value/ Sales multiple of 2.03 whereas the median multiple for the medical device industry as per Gurufocus data is as high as 6.37. Similarly, the company is trading at a Price/ Free Cash Flow multiple of 9.48 which is significantly below the industry median of 32.47 implying that the price has a long way up, through multiples expansion. It is worth highlighting that Quipt’s management team has over 50 years of combined experience in healthcare administration and acquisitions with more than $500 million in transactions. Their profound understanding and use of significant workflow procedures is bound to drive strong operational efficiencies. This should be one of the most important contributors to accelerated growth for the future, especially as it relates to the successful integration of recently acquired companies. Overall, Quipt appears to be one of the hottest and most undervalued med-tech plays and should be grabbed at current levels.


No Positions.


This website is a wholly owned subsidiary of SCD Media, LLC, herein referred to as Smallcaps Daily. Our publications are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. We may receive compensation for this article on a PPC basis as an affiliate. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The disclaimer is to be read and fully understood before using our services, joining our site or our email/blog list as well as any social networking platforms we may use. PLEASE NOTE WELL: Smallcaps Daily and its employees are not a Registered Investment Advisor, Broker Dealer or a member of any association for other research providers in any jurisdiction whatsoever.Release of Liability: Through use of this website viewing or using you agree to hold Smallcaps Daily, its operators owners and employees harmless and to completely release them from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. Smallcaps Daily encourages readers and investors to supplement the information in these reports with independent research and other professional advice. All information on featured companies is provided by the companies profiled, or is available from public sources and Smallcaps Daily makes no representations, warranties or guarantees as to the accuracy or completeness of the disclosure by the profiled companies. None of the materials or advertisements herein constitute offers or solicitations to purchase or sell securities of the companies profiled herein and any decision to invest in any such company or other financial decisions should not be made based upon the information provided herein. Instead Smallcaps Daily strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D. Smallcaps Daily is compliant with the Can Spam Act of 2003. Salesparq, LLC does not offer such advice or analysis, and Smallcaps Daily further urges you to consult your own independent tax, business, financial and investment advisors. Investing in micro-cap and growth securities is highly speculative and carries and extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled. The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results.In preparing this publication, Smallcaps Daily, has relied upon information supplied by its customers, publicly available information and press releases which it believes to be reliable; however, such reliability cannot be guaranteed. Investors should not rely on the information contained in this website. Rather, investors should use the information contained in this website as a starting point for doing additional independent research on the featured companies. Smallcaps Daily has not been compensated for this article. The advertisements in this website are believed to be reliable, however, Smallcaps Daily and its owners, affiliates, subsidiaries, officers, directors, representatives and agents disclaim any liability as to the completeness or accuracy of the information contained in any advertisement and for any omissions of materials facts from such advertisement. Smallcaps Daily is not responsible for any claims made by the companies advertised herein, nor is Smallcaps Daily responsible for any other promotional firm, its program or its structure. Smallcaps Daily is not affiliated with any exchange, electronic quotation system, the Securities Exchange Commission or FINRA.
Show More

Related Articles

Back to top button