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TSE:WELL
This summary was created by AI, based on 14 opinions in the last 12 months.
WELL Health Technologies is experiencing a complex phase marked by significant strategic changes, including the divestiture of non-core US operations and the planned IPO of its technology subsidiary, Wellstar. Despite a strong revenue growth of 56% year-over-year and positive organic growth of 19%, the stock struggles with perception issues and volatile market sentiment. Many experts note that the market is in a wait-and-see mode, and the company needs to demonstrate clearer growth synergies and execution on its strategies. Although analysts have recognized its cheap valuation relative to earnings, underlying uncertainties regarding acquisitions and market dynamics pose risks. Overall, while the fundamentals may appear solid on paper, investor confidence seems fragile, necessitating patience and a clearer path to growth.
WELL is up 84% YTD and not that far from its 52-week high. It ran up hard this year and the drop does look like profit-taking to us since there really was no negative news. We would consider it buyable today. For the Canadian sector we see it as quite attractive.
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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
Shares recently dropped over disappointing margins and profits, but they are the best in telehealth. Also, they made puzzling acquisitions. But the CEO has a great track record and blue-chop investors are involved. The stock isn't going anywhere, but the market wants to see better profits.