American Well (AMWL) AI Stock Analysis

• Market Cap: $111.45M
• Dividend Yield: N/A
• Average Volume (3M): 68.81K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.23
• Revenue Growth: 5.83%
• EPS Growth: 61.94%
• Country: US
• Employees: 877
• Sector: Healthcare
• Sector Strength: 54
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -1.24
• Shares Outstanding: 14,504,796
• 10 Day Avg. Volume: 43,029
• 30 Day Avg. Volume: 68,813
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: -0.53
• Enterprise Value/Revenue: -0.22
• Enterprise Value/Gross Profit: -0.45
• Enterprise Value/Ebitda: 0.55
• 1Y Price Target: $9.83
• Price Target Upside: 42.46% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 50 Neutral
• Price Target: $7.50 ▲(8.70% Upside)

American Well's overall stock score is driven by significant financial challenges, including declining revenues and persistent losses. While the earnings call provided some positive insights with improved EBITDA and strategic wins, technical indicators and valuation remain weak, reflecting ongoing operational and market challenges.

Positive Factors

Financial performance

2Q results came in ahead of expectations, despite the challenges presented by the DHA contract extension.

Revenues

AMWL beat in both revenues and adjusted EBITDA, driven by DHA performance payments.

Sales pipeline

The successful rollout with DHA and the pending sustainment award could serve as strong proof points, boosting Amwell's credibility which could help drive follow-on deals.

Negative Factors

Revenue outlook

The reduction in the FY25 topline outlook is caused by the DHA extension, as the previous forecast had assumed expansion revenues in the second half of FY25.

Subscription revenue

Management anticipates subscription revenue to be 53% of 2025 revenues, down from the prior expectation of nearly 60%.

Topline guidance revision

A negative topline guidance revision stems from the extension of the DHA contract for 2026, which will exclude automated care and behavioral health components due to budget constraints.

American Well Business Overview & Revenue Model

Company Description

American Well Corporation operates as a telehealth software company that enables digital delivery of care for healthcare. The company products offer urgent care; scheduled visits; acute behavioral health; telestroke; pediatrics; retail health, school health, and home settings. Its application offers urgent care; pediatrics; therapy; menopause nutrition; end-stage renal disease and dialysis; dermatology care; behavioral health therapy; and musculoskeletal care. The company also provides telemedicine equipment, including telemedicine carts, peripherals, tyto care, TV kits, tablets, and kiosks. American Well Corporation was incorporated in 2006 and is headquartered in Boston, Massachusetts.

How the Company Makes Money

Amwell generates revenue primarily through its telehealth platform, which is offered on a subscription basis to healthcare providers, insurers, and employers. The company charges fees for each video consultation conducted through its platform, earning a percentage of the total consultation fee. Additionally, Amwell has partnerships with various health systems and insurers who use its platform to enhance their own telehealth offerings. Revenue is also derived from licensing its technology to healthcare providers who use the platform to deliver virtual care services. These partnerships and licensing agreements contribute significantly to Amwell's earnings by expanding its reach and integrating its platform into existing healthcare infrastructure.

American Well Financial Statement Overview

Summary

American Well faces significant financial challenges, with declining revenues and persistent losses impacting its income statement. The balance sheet is supported by a strong equity base, although asset values are declining. Cash flows remain negative, indicating difficulty in turning operations into positive cash generation. Continued focus on improving operational efficiency and revenue growth is critical for financial stability.

Income Statement

American Well's income statement indicates declining revenues and persistent losses. The TTM shows a decrease in revenue with a total of $194.8 million compared to $254.4 million in the previous annual report. The company continues to operate at a loss with a negative net profit margin of -79.4% for TTM, reflecting significant challenges in achieving profitability.

Balance Sheet

The balance sheet shows a relatively strong equity position, with an equity ratio of 70.1% in the TTM, suggesting a low reliance on debt. However, the company has seen a reduction in total assets and equity over time, which could indicate challenges in asset management and growth.

Cash Flow

The cash flow statement highlights negative free cash flow of -$105 million in the TTM, indicating ongoing operational cash challenges. The operating cash flow to net income ratio is negative, underscoring inefficiencies in cash generation relative to reported losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	269.78M	254.36M	259.05M	277.19M	252.79M	245.26M
Gross Profit	132.10M	98.95M	94.76M	116.77M	104.31M	88.47M
EBITDA	-108.37M	-184.56M	-225.99M	-249.69M	-162.20M	-216.93M
Net Income	-124.52M	-208.14M	-675.16M	-269.79M	-173.65M	-226.44M
Balance Sheet
Total Assets	388.66M	435.97M	589.71M	1.22B	1.45B	1.38B
Cash, Cash Equivalents and Short-Term Investments	219.07M	228.32M	372.04M	538.55M	746.42M	1.04B
Total Debt	6.39M	8.20M	11.79M	14.84M	16.61M	7.65M
Total Liabilities	94.08M	119.72M	109.52M	133.71M	184.96M	130.45M
Stockholders Equity	282.59M	304.77M	464.22M	1.06B	1.24B	1.22B
Cash Flow
Free Cash Flow	-82.78M	-142.56M	-163.59M	-202.77M	-142.10M	-115.78M
Operating Cash Flow	-75.62M	-127.34M	-148.34M	-192.32M	-141.54M	-112.46M
Investing Cash Flow	10.53M	-18.65M	-19.17M	-11.63M	-59.63M	-66.76M
Financing Cash Flow	967.00K	1.38M	2.15M	-3.61M	5.75M	983.12M

American Well Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMWL, the sentiment is Negative. The current price of 6.9 is below the 20-day moving average (MA) of 7.20, below the 50-day MA of 7.72, and below the 200-day MA of 8.24, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 41.59 is Neutral, neither overbought nor oversold. The STOCH value of 24.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AMWL.

American Well Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPRX	68 Neutral	$335.47M	―	-8.21%	―	25.90%	46.13%
EVH	55 Neutral	$1.13B	―	-13.38%	―	-6.71%	-71.40%
Sector *	51 Neutral	$7.84B	-0.18	-41.53%	2.28%	22.72%	-1.87%
AMWL	50 Neutral	$111.45M	―	-38.52%	―	5.83%	61.94%
HCAT	50 Neutral	$238.57M	―	-28.42%	―	5.55%	-0.99%
DH	49 Neutral	$574.20M	―	-64.27%	―	-5.24%	23.59%
TDOC	47 Neutral	$1.37B	―	-14.18%	―	-2.57%	79.86%

American Well Corporate Events

American Well Holds Annual Stockholders Meeting

On June 11, 2025, American Well Corporation held its annual meeting of stockholders, where three key proposals were voted on. The stockholders elected three Class II directors to serve until the 2028 meeting, ratified PricewaterhouseCoopers LLP as the independent accounting firm for 2025, and approved, in an advisory capacity, the compensation for the company’s named executive officers.