Value
7.8/10data confidence 100%| Component | Sub-score |
|---|---|
| P/E | 8.6 |
| P/S | 8.0 |
| EV/EBITDA | 7.8 |
| Fwd P/E | 9.2 |
| PEG | 4.4 |
| Analyst target | 9.0 |
- ▸Forward P/E: 10.5x
- ▸PEG: 2.10
- ▸Attractively valued
SBC · Why this verdict
Why SBC Medical Group Holdings Inco (SBC) is rated BUY NOW
Updated
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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VerdictBUY NOW
Overall score7.1/10
ConfidenceMEDIUM
MacroRISK_OFF
TrendMatrix Research · core thesis
Engine thesis — one sentence
SBC Medical is a high-quality, attractively valued small cap with a breakout setup and 37.2% upside to the analyst target, though it trades near its 52-week high and the latest quarter missed estimates.
Falsifiable statement — pillar-level invalidators below. Engine-derived; not personalized advice.
Thesis pillars
| Pillar | Expectation | Trend |
|---|---|---|
The business is rated high quality with margins of 28%, a Piotroski F-Score of 9/9, a wide economic moat and 129% free cash flow to net income, giving a quality score of 8.9. Quality breakdown | Quality score should stay above 8.0 with free cash flow conversion above 100% of net income. | →Stable |
| CounterConcentration risks (2 medium items in the annual risk factors) and a customer-dependent consulting model could erode margins faster than the score implies. | ||
A forward P/E of 10.0x flags the stock as attractively valued, and the analyst target of $7.44 implies 37.2% upside from $5.42. Valuation breakdown | Price should move toward the $7.44 analyst target over 12 months. | →Stable |
| CounterAnalyst coverage is light at 4 analysts, and the analyst-disagree flag (1.6x) suggests the target may be inflated. | ||
A golden cross with price above all moving averages, RSI 60 and bullish MACD gives momentum of 6.5, passing the 5.5 gate. Chart pattern detection | Momentum should stay above 5.5 with price holding above the 200-day moving average. | →Stable |
| CounterThe stock is only 1.6% below its 52-week high, so a breakout here can fail at resistance. | ||
The latest quarter reported earnings per share of $0.10 against a $0.12 estimate, a 14.9% miss, after one beat and two in-line results. Earnings | Earnings per share should meet or beat estimates at the 2026-11-13 report. | ↑Improving |
| CounterAveraged over the last four quarters the surprise is +5.1%, so the miss may be noise rather than a trend. | ||
The put/call ratio is elevated at 2.00, indicating hedging demand on a stock otherwise showing bullish signals. Risk breakdown | Put/call ratio should fall below 1.0 as the breakout holds. | ↓Deteriorating |
| CounterOpen interest is zero on both sides, so the ratio reflects a thin options market rather than genuine bearish positioning. | ||
The business is rated high quality with margins of 28%, a Piotroski F-Score of 9/9, a wide economic moat and 129% free cash flow to net income, giving a quality score of 8.9.
→StableQuality breakdown
- Expectation
- Quality score should stay above 8.0 with free cash flow conversion above 100% of net income.
CounterConcentration risks (2 medium items in the annual risk factors) and a customer-dependent consulting model could erode margins faster than the score implies.
A forward P/E of 10.0x flags the stock as attractively valued, and the analyst target of $7.44 implies 37.2% upside from $5.42.
→StableValuation breakdown
- Expectation
- Price should move toward the $7.44 analyst target over 12 months.
CounterAnalyst coverage is light at 4 analysts, and the analyst-disagree flag (1.6x) suggests the target may be inflated.
A golden cross with price above all moving averages, RSI 60 and bullish MACD gives momentum of 6.5, passing the 5.5 gate.
→StableChart pattern detection
- Expectation
- Momentum should stay above 5.5 with price holding above the 200-day moving average.
CounterThe stock is only 1.6% below its 52-week high, so a breakout here can fail at resistance.
The latest quarter reported earnings per share of $0.10 against a $0.12 estimate, a 14.9% miss, after one beat and two in-line results.
↑ImprovingEarnings
- Expectation
- Earnings per share should meet or beat estimates at the 2026-11-13 report.
CounterAveraged over the last four quarters the surprise is +5.1%, so the miss may be noise rather than a trend.
The put/call ratio is elevated at 2.00, indicating hedging demand on a stock otherwise showing bullish signals.
↓DeterioratingRisk breakdown
- Expectation
- Put/call ratio should fall below 1.0 as the breakout holds.
CounterOpen interest is zero on both sides, so the ratio reflects a thin options market rather than genuine bearish positioning.
Per-dimension breakdown
Quality
8.9/10data confidence 100%| Component | Sub-score |
|---|---|
| ROE | 6.3 |
| ROA | 7.5 |
| Gross margin | 10.0 |
| Op margin | 10.0 |
| Net margin | 10.0 |
| Current ratio | 9.7 |
| FCF quality | 9.3 |
| Moat | 8.4 |
| Rule of 40 | 8.2 |
| Piotroski F | 10.0 |
- ▸Strong margins: 28%
- ▸Excellent cash conversion: 129% FCF/NI
- ▸Wide economic moat
- ▸Compounder quality: strong returns + growth
Growth
5.8/10data confidence 33%| Component | Sub-score |
|---|---|
| Rev growth | 5.8 |
Momentum
5.4/10data confidence 100%| Component | Sub-score |
|---|---|
| RSI | 5.5 |
| MACD | 3.2 |
| OBV | 10.0 |
| MA position | 6.0 |
| Volume | 2.1 |
- ▸Volume accumulation (rising OBV)
- ▸Above 200-day MA
Sentiment
7.4/10data confidence 100%| Component | Sub-score |
|---|---|
| Analyst rating | 7.1 |
| Price target | 9.8 |
| erm sentiment | 5.0 |
- ▸Light analyst coverage (4.0) — signal dampened
- ▸Analyst upside: 66%
Insider
7.3/10data confidence 75%| Component | Sub-score |
|---|---|
| materiality | 5.0 |
| holder change | 10.0 |
| notable moves | 7.0 |
- ▸No net insider activity — $0 (0.000% of mkt cap)
- ▸Institutions accumulating
Peer rank
7.0/10data confidence 80%| Component | Sub-score |
|---|---|
| value rank | 5.5 |
| quality rank | 6.3 |
| growth rank | 7.8 |
- ▸Attractive P/E vs peers
- ▸Conservative debt levels
Technical
7.5/10data confidence 100%| Component | Sub-score |
|---|---|
| bollinger | 6.8 |
| support resistance | 7.5 |
| 52w position | 8.2 |
Risk (lower is worse)
5.7/10data confidence 100%| Component | Sub-score |
|---|---|
| short interest | 8.0 |
| days to cover | 7.3 |
| volatility | 0.0 |
| implied vol | 0.0 |
| beta | 9.7 |
| debt equity | 9.3 |
- ▸High IV: 111%
- ▸Concentration risks: 2 MED (10-K Item 1A)
Catalyst
7.1/10data confidence 100%| Component | Sub-score |
|---|---|
| erm | 5.0 |
| earnings history | 10.0 |
| earnings timing | 5.0 |
| surprise avg | 8.4 |
- ▸Earnings in 13 days
How the verdict was assembled
Engine trigger
Deep value: 52% margin of safety. Extreme undervaluation.
Engine technical detail
verdict_path:
L4:PATH_A_DEEP_VALUEPassed (7)
- MOMENTUM:5.4>=4.5
- ASYMMETRY:3.9>=1.5
- INSIDER:OK
- NEWS_EVENTS:NONE_RECENT
- SEMI_CYCLE_PEAK:CLEAR
- MATERIALS_CYCLE_PEAK:CLEAR
- SECTOR_CONCENTRATION_CAP:sector=Industrials:1/10:self_excluded
Failed (0)
none
Warning (3)
- MOMENTUM:5.4<5.5 (soft — BUY_NOW allowed but watch)
- 8K_FLAG:3.01
- EARNINGS_PROXIMITY:13d<=14d (soft)
Reward-to-Risk
3.86
Upside
+41.0%
Downside
10.6%
Sizing output
HALF
SetupRange Bound — RSI 48 mid-range, Bollinger mid-band
EdgeInst Constrain — Small cap ($0.6B) below institutional reach
SuitabilityAggressive — MCap $0.6B<$5B
Investment implication
The STRONG_BUY_NOW verdict reflects clean gate clearance against Quality at 8.9 and asymmetric R:R of 3.86.
The strongest dimensions are Quality at 8.9, Value at 7.8, and Technical at 7.5; the weakest are Momentum at 5.4, Risk (lower is worse) at 5.7, and Growth at 5.8. The V9 engine cleared all gates with 3 warnings, producing an asymmetric reward-to-risk of 3.86 and an engine sizing output of HALF.
What would invalidate the thesis
Falsifying conditions — when triggered, the corresponding pillar's thesis is invalidated.
- P1High Quality Compounder
Trip ifQuality score falls below 7.0 from the current 8.9.
- P2Deep Value With Upside
Trip ifUpside to the analyst target falls below 15% from the current 37.2%.
- P3Breakout Momentum
Trip ifPrice falls below the $5.04 stop level, or momentum falls below 5.5.
- P4Recent Earnings Miss
Trip ifEPS surprise stays below 0% for 2 consecutive quarters.
- P5Bearish Options Hedging
Trip ifPut/call ratio exceeds 4.0 from the current 2.00.