Deep Dive: Ed Chang Discusses the Joint Corp.
This week we brought first-time guest Ed Chang on the show to discuss the Joint Corporation. The company is an operator and licensor of chiropractic clinics. Here are some questions we asked Ed on the show:
How did you find Joint Corp as an investment? Can you explain what the business does?
What makes Joint Chiropractic different than competitors? Why are they able to leave the insurance ecosystem?
How did the pandemic affect Joint Chiropractic and the industry operating environment?
The chiropractic industry is a bit of a mystery to people. How large is it? Is it growing? What sort of opportunity is there for Joint Chiropractic?
How does the regional developer model work and why does it benefit Joint?
We saw on Google Maps that locations get really strong customer reviews. What is driving this pleasant customer experience? Is it replicable by competitors?
The corporate clinics seem to be masking strong unit economics across the business right now. When does that change? What sort of margins can company-owned stores have?
How do you go about valuing JYNT stock? What was it like managing the huge run-up in 2021? What is causing investors to be nervous now?
Thoughts on management
Premortem: What would cause Joint to be a poor-performing investment from here?
Disclosure: The author and podcast guests are not your financial advisors. Ryan Henderson and Brett Schafer are general partners and portfolio managers at Arch Capital. Clients of Arch Capital may hold securities discussed on this show.