Zhongchao Inc. (ZCMD) | Investment Case

1. Company Snapshot

1.a. Company Description

Zhongchao Inc.provides healthcare information, education, and training services in the People's Republic of China.The company offers online and onsite health information services, healthcare education programs, and healthcare training products, including clinical practice training, open classes of popular medical topics, interactive case studies, academic conference and workshops, continuing education courses, and articles and short videos with educational healthcare content.

It also provides customized medical courses and medical training services; and patient management services through online platform under the Zhongxun brand.The company operates through its mdmooc.org online platform under the MDMOOC brand; and Sunshine Health Forums, a Wechat subscription account and mobile app.It serves enterprises, non-for-profit organizations, and medical journals, as well as healthcare professionals, nurses, doctors, and other healthcare workers.

The company was founded in 2012 and is headquartered in Shanghai, China.

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1.b. Last Insights on ZCMD

Zhongchao Inc.'s recent performance was impacted by a significant decline in trading volume, with a 93% drop in shares traded compared to the average daily volume. The company's latest earnings release did not provide any positive catalysts. According to recent reports, the stock has been under scrutiny, with some questioning whether it's time to sell. Additionally, the company's low stock price, with intraday lows of $0.68, may be a concern. No recent announcements on share buybacks, new products, or acquisitions have been made to boost investor sentiment.

1.c. Company Highlights

Last Price	0.66
Change Percentage	8.28%
Open	0.57
Previous Close	0.61
Market Cap ( Millions)	3
Volume	3014
Year High	2.5
Year Low	0.54
M A 50	0.77
M A 200	1.06

FCF Yield	-46.09%
Dividend Yield	0.00%
ROE	-8.26%
Debt / Equity	0.14%
Net Debt / EBIDTA	2184.67%
Price To Book	0.83
Price Earnings Ratio	-9.85
Price To FCF	-2.17
Price To sales	0.23
EV / EBITDA	14.31

2. Transcript Summary

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3. NewsRoom

Zhongchao (NASDAQ:ZCMD) Stock Price Down 2.2% – Time to Sell?

Oct -21

Source: defenseworld.net

Why Is Zhongchao (ZCMD) Stock Up 52% Today?

Aug -07

Source: investorplace.com

Why Is Zhongchao (ZCMD) Stock Up 103% Today?

Apr -19

Source: investorplace.com

Why Is Zhongchao (ZCMD) Stock Up 40% Today?

Apr -04

Source: InvestorPlace

Zhongchao Inc. Announces Successful Medication Assistance Services for Over 7,000 SLE Patients with Approximately 130,000 Units of Medications

Mar -12

Source: prnewswire.com

Why Is Zhongchao (ZCMD) Stock Up 15% Today?

Mar -05

Source: investorplace.com

Zhongchao Inc. Announces 1-for-10 Share Consolidation

Feb -27

Source: prnewswire.com

Zhongchao Inc. Collaborates with a Public Health Foundation to Support Sustainable and Effective Cancer Treatments

Dec -11

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (17.39%)

6. Segments

MDMOOC Services

Expected Growth: 25.4%

Growing demand for online learning, increasing adoption of MOOCs, and rising need for scalable and customizable solutions in educational institutions drive the growth of MDMOOC Services.

Patented Drugs

Expected Growth: 8.5%

Zhongchao Inc.'s patented drugs, with unique formulations and manufacturing processes, are poised for growth driven by increasing demand for innovative pharmaceutical products, patent protection, and exclusive rights, ensuring a competitive edge in the market.

7. Detailed Products

Digital Healthcare Solutions

Zhongchao Inc. offers digital healthcare solutions that provide patients with personalized health management plans, enabling them to take control of their health and wellness.

Medical Imaging and Diagnostics

Zhongchao Inc. provides medical imaging and diagnostics services, including MRI, CT, and ultrasound scans, to help healthcare professionals diagnose and treat medical conditions.

Pharmaceutical Services

Zhongchao Inc. offers pharmaceutical services, including drug development, manufacturing, and distribution, to help patients access innovative and affordable medications.

Medical Device Solutions

Zhongchao Inc. provides medical device solutions, including implantable devices, surgical instruments, and diagnostic equipment, to help healthcare professionals provide high-quality patient care.

Healthcare IT Solutions

Zhongchao Inc. offers healthcare IT solutions, including electronic health records, telemedicine platforms, and healthcare analytics, to help healthcare organizations improve patient care and reduce costs.

8. Zhongchao Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Zhongchao Inc. faces moderate threat from substitutes due to the availability of alternative products in the market.

Bargaining Power Of Customers

Zhongchao Inc. has a high bargaining power of customers due to the presence of large and established customers who can negotiate prices and terms.

Bargaining Power Of Suppliers

Zhongchao Inc. has a low bargaining power of suppliers due to the presence of multiple suppliers and the company's ability to negotiate prices.

Threat Of New Entrants

Zhongchao Inc. faces a moderate threat of new entrants due to the presence of barriers to entry and the company's established brand reputation.

Intensity Of Rivalry

Zhongchao Inc. operates in a highly competitive industry with many established players, leading to a high intensity of rivalry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	4.30%
Debt Cost	3.95%
Equity Weight	95.70%
Equity Cost	5.00%
WACC	4.96%
Leverage	4.49%

11. Quality Control: Zhongchao Inc. passed 3 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

CompuGroup Medical

A-Score: 4.7/10

Value: 4.6

Growth: 4.2

Quality: 4.1

Yield: 0.6

Momentum: 9.5

Volatility: 5.0

1-Year Total Return ->

Accolade

A-Score: 4.6/10

Value: 8.0

Growth: 5.8

Quality: 3.8

Yield: 0.0

Momentum: 9.5

Volatility: 0.7

1-Year Total Return ->

Zhongchao

A-Score: 4.2/10

Value: 7.2

Growth: 2.6

Quality: 5.5

Yield: 0.0

Momentum: 6.0

Volatility: 3.7

1-Year Total Return ->

EUDA Health

A-Score: 4.0/10

Value: 6.0

Growth: 1.6

Quality: 6.8

Yield: 0.0

Momentum: 6.0

Volatility: 3.7

1-Year Total Return ->

Health Catalyst

A-Score: 3.6/10

Value: 9.2

Growth: 5.6

Quality: 4.3

Yield: 0.0

Momentum: 0.5

Volatility: 2.0

1-Year Total Return ->

Augmedix

A-Score: 3.2/10

Value: 6.4

Growth: 4.6

Quality: 3.5

Yield: 0.0

Momentum: 5.0

Volatility: 0.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

11.18%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

4.96%

Zhongchao Inc. - KYG9897X1079

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on ZCMD

1.c. Company Highlights

Weak Momentum

Cheaper

More Volatile

Medium Volatility

Average Quality

Fairly Valued

Average Growth

Stable Momentum

Strong Momentum

Lower Growth

Average Yield

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (17.39%)

6. Segments

MDMOOC Services

Expected Growth: 25.4%

Patented Drugs

Expected Growth: 8.5%

7. Detailed Products

Digital Healthcare Solutions

Medical Imaging and Diagnostics

Pharmaceutical Services

Medical Device Solutions

Healthcare IT Solutions

8. Zhongchao Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Zhongchao Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.66$

Current Price

0.66$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA