Healthcare provider benefits from rising patient numbers and demographic changeThe better United Health

Hello my dears,

Today I went on a search for you. For an exciting growth company in the growing health services sector.

I think it's a great alternative to the more well-known, but sometimes disappointing players.

I look forward to your assessment and opinions in the comments.

( @Iwamoto a little longer for you today).

The Brightspring IPO focuses on complex patients in the US healthcare system - the market opportunity is enormous at USD 1 trillion! USD enormous!

Since the IPO in January 2024, Brightspring's share price has almost only known one direction: upwards. Founded in 1974, the US company offers comprehensive home and community-based healthcare and pharmacy services for people with complex illnesses. The aim: to avoid hospital costs.

Business driver: BrightSpring Health Service (BTSG) is a provider of home care services. The company cares for senior citizens, people with disabilities or cognitive impairments, among others, and offers services ranging from home care and palliative care to specialized medication. In view of the ageing population and the increasing demand for qualified care services, BrighSpring Health Service has excellent growth prospects.

BrightSpring awakens growth fantasies with focus on home care

BrightSpring Health Services (ISIN: US10950A1060) offers comprehensive nursing and pharmacy services for patients in the USA, particularly for senior citizens and people with chronic illnesses. With the recent divestiture of its Community Living business, the company is sharpening its focus on home care and related pharmacy services. Founded in 1974, BrightSpring went public on the Nasdaq stock exchange in January 2024.

The company pursues an inorganic growth strategy to maintain its position as a leading provider of home care. Profits are constantly being invested in acquisitions, most recently in a service provider from Arkansas and a specialty pharmacy in Texas. In the past financial year 2024, the 10 billion turnover threshold was exceeded for the first time (USD 11.27 billion).

On May 2, 2025, BrightSpring Health Services published its report for Q1 2025. Revenue increased by 26 % year-on-year to USD 2.88 billion, while the company generated net income of USD 0.19 per share, an increase of 111 % and more than double the previous year's figure. an increase of 111%, more than double what analysts were expecting. Investors were also impressed by the increased outlook with expected sales of up to USD 12.5 billion for the 2025 financial year.

Following the figures, the share price exploded by over 30% within a few days. The all-time high of USD 24.82 is now within reach. As long as the market environment remains positive, the share price should continue to rise in view of the extreme earnings surprise of over 100 %.

Conclusion

BrightSpring Health Services is convincing with its focus on home care, double-digit sales growth and a spectacular earnings surprise in Q1 2025. The share is benefiting from the strategic realignment and has shown new strength with the recent price jump. Following the rally, the share remains interesting, especially as an anti-cyclical entry opportunity during setbacks.

KKR's investment helps us to improve results for patients.

(The star investor is also invested here @Simpson invested)

Global investment firm KKR acquired BrightSpring Health Services ("BrightSpring") in March 2019. As part of this transaction, BrightSpring merged with PharMerica Corporation ("PharMerica") to become a leading provider of home and community-based healthcare and pharmacy services to indigent and medically complex populations.

KKR's investment has helped us to continually invest in our people and technology during a time of great strain on the healthcare system. Their support has helped us invest over $60 million in our Community Living employees during the pandemic - and increase wages by approximately 23.9% from January 2019 to February 2022.

BrightSpring Gesundheitsdienste - BrightSpring Gesundheitsdienste

USD in millions

Estimates

Year
Turnover Change

2025 12.723 12,93 %

2026 14.509 14,03 %

2027 16.419 13,17 %

Year
EBIT
Change in

2025 394,3 2,79 %

2026 473,5 20,08 %

2027 546,2 15,37 %

Year
Net result
Change in

2025 157,7 972,92 %

2026 256,7 62,8 %

2027 336,2 30,97 %

Year
Net debt
Free cash flow

2025 2.139 309,2

2026 1.484 348,9

2027 1.260 470,5

Year
EBIT margin
ROE

2025 3,1 % 11,87 %

2026 3,26 % 12,44 %

2027 3,33 % 13,76 %

Year
Earnings per share

2025 0,7186

2026 1,076

2027 1,412

Year
P/E RATIO
PEG
FCF Yield

2025 44.5x -0x 3.52 %

2026 29.7x 0.6x 4.3 %

2027 22.7x 0.7x 5.96 %

No. of shares (in thousands) 206,539

Market value 6,637

@Liebesspieler ???

Liebesspieler@Liebesspieler

11Mês

@Tenbagger2024 thanks for highlighting and for the exciting presentation :)

Here is the result of a first short analysis from my perspective. At first glance, BrightSpring Health Services looks like an interesting growth stock in the home and community care sector, supported by structural tailwinds such as demographic pressure and the shift to outpatient care. The market position is solid, the growth understandable.

From my point of view, however, a look at the figures puts this first impression into perspective: margins and cash flow are not yet at a level that I would classify as a real quality basis, and the level of debt also remains a point to bear in mind. The valuation is also ambitious - high P/E ratio, EV/EBITDA around 14× - and leaves little room for operational errors.

Bottom line: an interesting story from my perspective, but operationally not yet convincing enough for the current valuation range.

•

Tenbagger-Capital@Tenbagger-Capital

@Liebesspieler
Thank you, thank you.
I also see room for improvement in the margins.
But the debt will be reduced nicely over the years.
And with KKR behind us, I see less of a problem.
I think the big issue is growth first.
And the last takeovers were handled well.
Many such fast-growing companies are not profitable at all.
So I don't see it as quite so negative.
Because the growth is right, if you can now improve the margins even more, it would be brilliant.

••

@Tenbagger2024 Thank you for the classification - I can well understand it. I completely agree with you on the subject of growth in particular: BrightSpring definitely has a tailwind in a structurally strong market, and the integration of the latest acquisitions looks cleanly implemented.

From my perspective, however, this is precisely why it is important to focus on quality. Growth alone is not enough in the long term; margins, cash flow and debt must follow suit at some point. The fact that KKR is in the background helps - nevertheless, the operational foundation is not yet where I would like to see it.

So I don't see it as a negative, more as an interim situation: strong growth, solid story, but still some way to go before profitability supports the overall picture. If they really pull up the margins, the case will be much more rounded.

Max@Maximilian1

My dear. I'm really excited about that

Healthcare provider benefits from rising patient numbers and demographic change! The better United Health ?