A little more than a year ago, we covered The Joint Corp. (JYNT), a small-cap specialized franchisor of chiropractic clinics in the United States. The company initially grabbed our attention because of its snowballing expansion over the past few years, causing shares to jump from $2 to $20 during a relatively short period of time.
Source: Google Finance
We are particularly interested in franchises with the potential to scale, as many successful brands have utilized this type of business model to grow rapidly, with limited capital intensity. We have previously discussed such cases in our recent Domino’s Pizza and Dunkin’ Brands articles.
In this article, we will:
- Discuss The Joint Corp.’s business model and financials.
- Assess the stock’s valuation and investor returns.
- Conclude why The Joint Corp. could provide a profitable investment opportunity, though risks remain.
Business model and financials
Over the past few years, The Joint Corp.