
TSE:WELL
This summary was created by AI, based on 13 opinions in the last 12 months.
WELL Health Technologies has experienced a tumultuous journey, particularly following its pandemic-era success. On one hand, experts recognize the company's strong revenue growth and potential for market share expansion, particularly in Canada, noting a significant organic growth rate of 19%. However, concerns persist regarding its execution strategy and the regulatory environment affecting healthcare mergers. Many analysts highlight the firm’s cheap valuation metrics, trading at around 9x PE, yet the stock struggles to find its footing. The ongoing divestiture of US operations is seen as a necessary step, but the slow execution has left investors cautious, leading to a sense of wait-and-see among market participants. Overall, optimism surrounds its crown jewel technology and future IPO potential, suggesting that patience could be rewarded in the long run.
2024 Expectations :
Q4 EPS 3.7c; revenue $146.1M.
2022 EPS 12c; revenue $538.5M
2023 EPS 21c; revenue $621M
We would consider it a buy today.
Unlock Premium - Try 5i Free
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Strategy of acquiring clinics and digital assets. Strong player in digital health space in Canada. Entry into lucrative US market. Expensive valuation; high share price risk. Unlock Premium - Try 5i Free
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. EPS of $0.03 beat estimates and revenues were also ahead of expectations at $115.68M. Revenues increased 573% yoy for the quarter. Management expects 2022 revenues to top $500M and the company should be profitable. Very good results. Unlock Premium - Try 5i Free
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The stock price should not go below $3. 5i did not expect shares to go this low. Investors are not reacting to fundamentals recently. Nothing has changed for the company. More acquisitions should happen. Management is following their 5 year plan and doing a good job. Unlock Premium - Try 5i Free
It has had a very strong start to 2023 and has had minimal impacts from inflation and supply chain issues. It has 95% recurring revenue and organic growth of 21% year over year. Trades at 13.3 X EBITDA.