Bandera Partners LLC Increases Holdings in The Joint Corp: An In-Depth Analysis

Bandera Partners LLC, an investment firm based in New York, recently acquired additional shares of The Joint Corp. This article provides a detailed analysis of the transaction, as well as profiles of both Bandera Partners LLC and The Joint Corp. It also explores the potential implications of this investment on the market.

On September 18, 2023, Bandera Partners LLC added 77,436 shares of The Joint Corp to its portfolio at a trade price of $9.25 per share. This transaction increased the firm’s total holdings in The Joint Corp to 3,696,434 shares, accounting for 14.47% of its portfolio and 25.08% of the company’s outstanding shares. While the impact on Bandera Partners LLC’s portfolio was relatively small at 0.3%, this acquisition illustrates the firm’s confidence in The Joint Corp’s potential.

Bandera Partners LLC is headquartered in New York City and manages a portfolio consisting of 18 stocks with a total equity of $236 million. The firm’s investments focus primarily on the healthcare and energy sectors. Its top holdings include Alphabet Inc, Star Group LP, and Burford Capital Ltd.

The Joint Corp, based in the USA, operates and manages chiropractic clinics through various ownership models. The company has two business segments: Corporate Clinics and Franchise Operations. With a market capitalization of $151.912 million and a stock price of $9.98, The Joint Corp is currently profitable, boasting a PE percentage of 47.52. GuruFocus indicates that the company is significantly undervalued, with a GF Value of 41.55 and a Price to GF Value ratio of 0.24.

While The Joint Corp’s stock has experienced a year-to-date price change ratio of -27.52%, its performance since its Initial Public Offering has seen a gain of 50.76%. GuruFocus gives the stock a GF Score of 73/100, suggesting average performance in the future.

Analyzing The Joint Corp’s financials, we find that the company has a Financial Strength rank of 5/10, a Profitability Rank of 7/10, and a Growth Rank of 7/10. With a Piotroski F-Score of 8 and an Altman Z score of 2.44, The Joint Corp has a relatively stable financial position. In terms of industry performance, the company has a Return on Equity (ROE) of 9.54 and a Return on Assets (ROA) of 3.39. Over the past three years, The Joint Corp has seen growth in revenue and EBITDA, while its earnings have declined.

Considering The Joint Corp’s stock momentum, its 5-day, 9-day, and 14-day Relative Strength Index (RSI) values are 52.62, 44.45, and 39.41, respectively. Furthermore, the company’s 6 – 1 month and 12 – 1 month momentum indices stand at -35.83 and -37.70. While these figures indicate a decline in momentum, they should be viewed in the context of the company’s undervalued status and strong financials.

Bandera Partners LLC’s increased stake in The Joint Corp has the potential to enhance the firm’s portfolio performance. However, it is crucial for investors to consider the company’s stock momentum and industry performance when evaluating this investment.

– PE Percentage: The price-to-earnings (PE) ratio is the ratio of a company’s stock price to its earnings per share. It provides insights into the valuation of a stock.
– GF Value: GF Value is an estimate of a stock’s intrinsic value, calculated by GuruFocus based on various factors such as historical multiples, growth rates, and financial strength.
– RSI: The Relative Strength Index is a technical indicator that measures the magnitude and speed of price movements. It can signal overbought or oversold conditions in a stock.
– GF Score: The GF Score is a proprietary indicator developed by GuruFocus that evaluates a company’s financial strength and profitability. A higher score indicates better overall performance.
– Altman Z score: The Altman Z score is a formula that measures the likelihood of a company experiencing financial distress or bankruptcy. It considers various financial ratios to determine a company’s solvency.
– EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization is a measure of a company’s profitability that accounts for its operating expenses.

– GuruFocus:
– The Joint Corp: