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The Futility of SunLink Health Systems Inc. (AMEX:SSY)’s Fundamentals

SunLink Health Systems Inc. (AMEX:SSY) shares traded higher over the last trading session, gaining 3.89% on 06/17/21. The shares fell to a low of $2.85 before closing at $2.94. Intraday shares traded counted 0.66 million, which was 72.31% higher than its 30-day average trading volume of 2.39M. SSY’s previous close was $2.83 while the outstanding shares total 6.91M. The stock’s Relative Strength Index (RSI) is 48.17, with weekly volatility at 6.95% and ATR at 0.33. The SSY stock’s 52-week price range has touched low of $0.76 and a $7.62 high.

Investors have identified the Medical Care Facilities company SunLink Health Systems Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $21.26 million, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

SunLink Health Systems Inc. (SSY) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For SSY, the company has in raw cash 11.1 million on their books with 1.27 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 19.35 million total, with 8.95 million as their total liabilities.

SSY were able to record -0.1 million as free cash flow during the 09/30/2021 quarter of the year, this saw their quarterly net cash flow reduce by 86000.0. In cash movements, the company had a total of 1.2 million as operating cash flow.

Potential earnings growth for SunLink Health Systems Inc. (SSY)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 09/30/2021 quarter of the year, SunLink Health Systems Inc. recorded a total of 9.78 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -29.55% coming in sequential stages and their sales for the 09/30/2021 quarter reducing by -3.8%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 4.48 million trying to sell their products during the last quarter, with the result yielding a gross income of 5.3 million. This allows shareholders to hold on to 6.91M with the recently reported earning now reading -0.08 cents per share. This is a figure that compared to analyst’s prediction for their 09/30/2021.

Is the stock of SSY attractive?

In related news, Director, TURNER HOWARD E sold 53,421 shares of the company’s stock in a transaction that recorded on Jun 04. The sale was performed at an average price of 3.12, for a total value of 166,674. As the sale deal closes, the Director, FORD C MICHAEL now sold 17,700 shares of the company’s stock, valued at 53,100. Also, Director, TURNER HOWARD E sold 100,000 shares of the company’s stock in a deal that was recorded on May 21. The shares were price at an average price of 2.86 per share, with a total market value of 286,000. Following this completion of acquisition, the Director, MILLS CHRISTOPHER H B now holds 30,912 shares of the company’s stock, valued at 60,495. In the last 6 months, insiders have changed their ownership in shares of company stock by 10.70%.

0 out of 0 analysts covering the stock have rated it a Buy, while 0 have maintained a Hold recommendation on SunLink Health Systems Inc.. 0 analysts has assigned a Sell rating on the SSY stock. The 12-month mean consensus price target for the company’s shares has been set at $2.35.

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