Ehealth (EHTH) AI Stock Analysis

• Market Cap: $133.44M
• Dividend Yield: N/A
• Average Volume (3M): 371.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.42
• Revenue Growth: 17.04%
• EPS Growth: 74.07%
• Country: US
• Employees: 1,773
• Sector: Financial
• Sector Strength: 81
• Industry: Insurance - Brokers
• EPS (TTM): -0.47
• Shares Outstanding: 30,326,647
• 10 Day Avg. Volume: 243,742
• 30 Day Avg. Volume: 371,729
• PEG Ratio: 0.11
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.90
• Enterprise Value/Market Cap: 0.80
• Enterprise Value/Revenue: 0.05
• Enterprise Value/Gross Profit: 0.21
• Enterprise Value/Ebitda: 1.00
• 1Y Price Target: $9.00
• Price Target Upside: 112.26% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 59 Neutral
• Price Target: $4.50 ▲(6.13%Upside)

Ehealth's overall stock score reflects a mix of recovery and challenges. Key strengths include improved financial performance and strategic growth in the Medicare segment, highlighted in the earnings call. However, technical indicators show bearish trends, and valuation remains a concern due to negative earnings. Continued focus on cash flow management and addressing regulatory issues will be crucial to sustain growth.

Positive Factors

Business Strategy

EHTH's shift to more fee-based revenue (Amplify) is a welcome arrangement away from the traditional agent model.

Financial Performance

First-quarter revenue grew 22%, above the 8% estimate.

Operational Efficiency

Investments in more effective brand advertising and maintaining a more tenured agent resulted in a 24% year-over-year decline in acquisition costs.

Negative Factors

Cash Flow

The stock remains a wait-and-see due to pending sustainable positive inflection in operating cash flow.

Leadership and Governance

There is near-term uncertainty around management transition and legal issues as the company navigates the seasonally slower second and third quarters.

Regulatory Environment

The modest revenue outlook reflects tough comparison for the upcoming AEP if shopping reverts to more normalized levels and regulatory changes limit plan switching for dual eligibles.

Ehealth Business Overview & Revenue Model

Company Description

eHealth, Inc. operates a health insurance marketplace that provides consumer engagement, education, and health insurance enrollment solutions in the United States. The company operates in two segments, Medicare; and Individual, Family and Small Business. Its ecommerce platforms organize and present health insurance information in various formats that enable individuals, families, and small businesses to research, analyze, compare, and purchase a range of health insurance plans. The company operates a marketplace that offers consumers a choice of insurance products, such as Medicare Advantage, Medicare Supplement, Medicare Part D prescription drug, individual and family, small business, and other ancillary health insurance products from health insurance carriers. It markets health insurance plans through its websites, including eHealth.com, eHealthInsurance.com, eHealthMedicare.com, Medicare.com, PlanPrescriber.com, and GoMedigap.com, as well as through a network of marketing partners. The company also licenses its health insurance ecommerce technology that enables health insurance carriers to market and distribute health insurance plans online; and provides online sponsorship and advertising, and lead referral services. eHealth, Inc. was incorporated in 1997 and is headquartered in Santa Clara, California.

How the Company Makes Money

eHealth makes money primarily through commissions earned from insurance carriers for the plans sold via its platform. When a customer enrolls in a health insurance plan through eHealth, the company receives a commission from the insurance provider. These commissions can be either a one-time payment or recurring payments for the duration that the customer maintains the policy. eHealth's revenue streams also include advertising and sponsorship opportunities on their platform, although the majority of their income is derived from commissions. The company leverages its partnerships with numerous insurance carriers to offer a diverse range of plans, enhancing their appeal to a wide customer base seeking health insurance solutions. eHealth also invests in marketing and customer service to drive enrollment and enhance user experience, contributing to its earnings.

Ehealth Financial Statement Overview

Summary

Ehealth's financial performance indicates recovery, with improved margins and revenue growth in the TTM period. The balance sheet reflects a stable position with low leverage, though persistent negative cash flows and potential equity erosion pose risks. Key improvements are promising, but cash management and profitability sustainability remain critical.

Income Statement

Ehealth has shown significant improvement in its financial performance, with a notable revenue growth of 27.92% in TTM (Trailing-Twelve-Months) compared to the previous year. The gross profit margin for TTM is 92.91%, showing strong operational efficiency, while the net profit margin has improved to 5.25% from negative figures in prior years. EBIT and EBITDA margins for TTM are 8.38% and 12.35%, respectively, indicating enhanced profitability. However, previous years exhibited significant losses, which still present a risk factor.

Balance Sheet

The debt-to-equity ratio in TTM is 0.16, reflecting a conservative leverage position. Ehealth's equity ratio is 51.15%, indicating a solid equity base relative to its total assets. Return on equity (ROE) has improved to 4.98% from negative figures, pointing towards better utilization of equity. However, the reduction in stockholders' equity over recent years raises concerns about long-term sustainability if this trend continues.

Cash Flow

Ehealth's cash flow analysis reveals challenges, with operating cash flow remaining negative at -$12.01 million in TTM. The free cash flow growth has improved from -$31.22 million in the previous year to -$22.37 million in TTM. However, the operating cash flow to net income ratio is negative, suggesting inefficiencies in converting income to cash. Although there are signs of improvement, the cash flow situation still poses risks.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
552.57M	532.41M	452.87M	405.36M	538.20M	582.77M
	Gross Profit
513.55M	530.62M	451.10M	403.71M	536.21M	578.69M
	EBIT
46.28M	23.57M	-29.07M	-83.10M	-74.42M	53.32M
	EBITDA
68.23M	46.81M	-9.16M	-42.37M	-105.18M	66.27M
	Net Income Common Stockholders
28.99M	10.06M	-28.21M	-88.72M	-104.38M	45.45M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
82.24M	82.24M	121.65M	144.40M	123.23M	93.38M
	Total Assets
1.16B	1.16B	1.11B	1.11B	1.15B	1.04B
	Total Debt
96.92M	96.92M	103.16M	106.80M	41.37M	46.56M
	Net Debt
57.72M	57.72M	-12.56M	-37.60M	-40.56M	2.80M
	Total Liabilities
567.00M	567.00M	209.26M	198.37M	167.18M	202.46M
	Stockholders Equity
588.43M	588.43M	904.08M	914.24M	982.11M	837.56M
Cash Flow		Free Cash Flow
-22.37M	-31.22M	-17.47M	-42.38M	-183.48M	-131.62M
	Operating Cash Flow
-12.01M	-18.37M	-6.69M	-26.87M	-162.62M	-107.86M
	Investing Cash Flow
-32.66M	-48.42M	-15.89M	25.86M	-12.63M	-73.28M
	Financing Cash Flow
-9.11M	-9.67M	-6.22M	63.84M	213.24M	201.25M

Ehealth Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EHTH, the sentiment is Negative. The current price of 4.24 is below the 20-day moving average (MA) of 4.53, below the 50-day MA of 5.37, and below the 200-day MA of 6.33, indicating a bearish trend. The MACD of -0.35 indicates Negative momentum. The RSI at 39.96 is Neutral, neither overbought nor oversold. The STOCH value of 54.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EHTH.

Ehealth Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$12.77B	9.77	7.59%	16985.66%	12.31%	-7.69%
EHTH	59 Neutral	$133.44M	―	3.19%	―	17.04%	74.07%
SLQT	58 Neutral	$371.35M	―	0.82%	―	20.41%	93.09%
RELI	53 Neutral	$4.02M	―	-238.61%	―	2.40%	94.65%
TIRX	52 Neutral	$13.02M	―	-12.03%	―	158.74%	14.86%
GOCO	48 Neutral	$65.13M	―	0.80%	―	13.18%	97.01%
HUIZ	48 Neutral	$19.07M	11.44	-3.92%	―	2.63%	-101.10%

Ehealth Corporate Events

eHealth Boosts 2024 Outlook Following Strong AEP Performance

eHealth, Inc. announced strong performance during the Annual Enrollment Period (AEP), which led to an updated guidance for the fiscal year 2024. The company’s successful enrollment growth and enhanced margins are attributed to increased demand for its services and successful transformation initiatives. The updated guidance includes increased revenue expectations, improved net income ranges, and higher adjusted EBITDA, highlighting eHealth’s strategic positioning in the Medicare market and its readiness to capture further growth opportunities.