
TSE:WELL
This summary was created by AI, based on 15 opinions in the last 12 months.
WELL Health Technologies, active in the Canadian healthcare sector, has garnered mixed reviews from experts. While the company is seen as well-positioned due to its focus on Canadian assets and consolidation of clinics, concerns linger regarding its large American assets, which some analysts believe are dragging down the stock. There is optimism surrounding the upcoming IPO of its technology business, Wellstar, which is expected to unlock significant value. However, challenges persist, such as a competitive regulatory environment and a perceived lack of execution. Despite its attractive valuation metrics, many experts highlight the need for patience and concrete progress on divesting non-core operations to reignite investor confidence.
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
The stock has performed well this year - it was as high as +~110% year-to-date, and we see some consolidation here as being healthy. We do not see any specific news that would cause the share price to drop. At a 14.2X forward P/E and expectations for strong growth going forward, we would consider it buyable, however, we would like to see the price find support before entering here.
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