CareCloud Inc. 8.75% Series B Cumulative Redeemable Perpetual Preferred Stock (CCLDO)

FairStock Score: 50/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at CCLDO not as common equity but as a cumulative perpetual preferred claim on CareCloud, a healthcare IT and practice-management business with 3,650 employees. The appeal is the 7.97% dividend yield at the 2026-05-22 close of $27.44, just below the 52-week high of $27.51. That suggests investors are paying up for the coupon. The underlying company is growing: revenue growth of 13.17%, and in the first quarter of 2026 (2026-Q1) revenue was $31.3M with net income of $922,000, a 2.95% margin. But profit growth is -52.67%, so the direction is troubling. FairStock's calculations show ROE of 17.37% and ROCE of 8.13%, a low debt-to-equity ratio of 0.10, and trailing free cash flow of $19.3M. Those are respectable, yet the Piotroski F-Score is only 4/9, and the P/B of 20.03 at the close is not a Graham bargain. The FairStock Score is 50/100. There is no Lynch category because only zero years of filed results are available under the rule, needing three. For a preferred investor, the margin of safety depends on whether $19.3M FCF and modest net income can keep covering the preferred dividend through cycles. The data provided do not give dividend coverage, liquidation preference, call terms, or common-equity cushion. With beta 1.60 and profits volatile, I would demand a wider yield or clearer coverage. As Graham would say, price is what you pay; value is what you get — here the value is not obvious from the numbers.

In plain English: CareCloud is a healthcare technology company that sells software and business services to doctors and hospitals. The business is growing revenue, but profits have fallen sharply and the latest quarter was only slightly profitable. The preferred shares yield about 8% and trade near the top of their 52-week range; based on the given numbers, the price looks full compared with accounting value and the mixed financial picture.

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Data as of 2026-05-22 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer