
TSE:WELL
This summary was created by AI, based on 13 opinions in the last 12 months.
WELL Health Technologies, represented by the symbol WELL-T, is currently navigating a challenging landscape post-pandemic. While it demonstrated strong revenue growth of 56% last quarter, concerns linger regarding its execution and integration of acquisitions. Experts highlight the company's efforts to divest non-core operations in the US, which is seen as a strategic move, but the process is reportedly taking longer than anticipated. The stock has experienced significant volatility, leading some analysts to consider it a speculative investment, albeit at an attractive valuation of around 9-10x PE. Overall, while there is potential for growth particularly in the Canadian market where it holds a small share, investor sentiment is hampered by regulatory scrutiny and past disappointments, creating a tenuous outlook for the stock's future performance.
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.
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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.