Ehealth (EHTH) AI Stock Analysis

• Market Cap: $106.34M
• Dividend Yield: N/A
• Average Volume (3M): 594.12K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.71
• Revenue Growth: 16.19%
• EPS Growth: 89.75%
• Country: US
• Employees: 1,773
• Sector: Financial
• Sector Strength: 72
• Industry: Insurance - Brokers
• EPS (TTM): -1.26
• Shares Outstanding: 30,557,180
• 10 Day Avg. Volume: 1,034,262
• 30 Day Avg. Volume: 594,118
• 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: 4.51
• Enterprise Value/Revenue: 0.88
• Enterprise Value/Gross Profit: 0.88
• Enterprise Value/Ebitda: 6.72
• 1Y Price Target: $5.00
• Price Target Upside: 45.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 48 Neutral
• Price Target: $3.50 ▲(1.74% Upside)

Ehealth's overall stock score reflects a challenging financial and technical environment, offset by positive strategic developments and leadership changes. The most significant concerns are the negative revenue growth and cash flow issues, while the earnings call and new CEO appointment provide some optimism for future improvements.

Positive Factors

Financial Management

Adjusted EBITDA showed improvement by beating previous estimates, indicating better-than-expected financial management.

Financial Performance

Favorable Medicare tail revenue contributed to an upside in the company's financial performance.

Revenue Growth

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

Negative Factors

Management Uncertainty

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

Revenue Outlook

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.

Sector Headwinds

The stock is considered a wait-and-see story due to near-term sector headwinds and the need for sustainable positive cash flow.

Ehealth Business Overview & Revenue Model

Company Description

Ehealth, Inc. (EHTH) is a leading online source for health insurance information and enrollment in the United States. The company operates a comprehensive digital platform that connects consumers with various health insurance options, including individual and family plans, Medicare products, and supplemental insurance. Ehealth leverages advanced technology to offer personalized health insurance recommendations, making it easier for users to compare plans and enroll in coverage that meets their needs.

How the Company Makes Money

Ehealth generates revenue primarily through commissions earned from health insurance carriers when consumers purchase plans through its platform. The company also offers advertising services to insurance companies that wish to promote their products on Ehealth's site. Additionally, Ehealth earns revenue from lead generation by providing consumer contact information to insurers who then follow up with potential customers. Significant partnerships with major insurance providers enhance Ehealth's product offerings, expand its market reach, and contribute to its earnings by increasing the volume of insurance plans sold through its platform.

Ehealth Financial Statement Overview

Summary

Ehealth's financial performance is mixed. While profitability metrics have improved, revenue contraction and cash flow challenges are significant concerns. The balance sheet remains strong, providing some stability.

Income Statement

Ehealth's income statement shows a mixed performance. The TTM data reveals a decline in revenue growth rate, indicating a contraction in sales. However, there is an improvement in profitability with a positive net profit margin and EBIT margin compared to previous periods. The gross profit margin remains strong, suggesting efficient cost management. Overall, while profitability metrics have improved, the negative revenue growth is a concern.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio, indicating conservative leverage. The equity ratio is healthy, showing a strong capital base. Return on equity has improved but remains modest. Overall, the balance sheet suggests financial stability with limited risk from debt.

Cash Flow

Cash flow analysis highlights challenges with negative operating and free cash flows, although there is an improvement in free cash flow growth. The operating cash flow to net income ratio is negative, indicating cash flow issues despite reported net income. The free cash flow to net income ratio is high, suggesting reliance on non-operating cash flows. Overall, cash flow management remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	547.49M	532.41M	452.87M	405.36M	538.20M	582.77M
Gross Profit	547.49M	530.62M	451.10M	403.71M	536.21M	578.69M
EBITDA	71.34M	46.81M	295.00K	-77.65M	-105.18M	66.27M
Net Income	39.56M	10.06M	-28.21M	-88.72M	-104.38M	45.45M
Balance Sheet
Total Assets	1.08B	1.16B	1.11B	1.11B	1.15B	1.04B
Cash, Cash Equivalents and Short-Term Investments	105.20M	82.24M	121.65M	144.40M	123.23M	93.38M
Total Debt	93.76M	96.92M	103.16M	106.80M	41.37M	46.56M
Total Liabilities	165.88M	229.49M	209.26M	198.37M	167.18M	202.46M
Stockholders Equity	913.83M	925.94M	904.08M	914.24M	982.11M	837.56M
Cash Flow
Free Cash Flow	-30.13M	-31.22M	-17.47M	-42.38M	-183.48M	-131.62M
Operating Cash Flow	-21.03M	-18.37M	-6.69M	-26.87M	-162.62M	-107.86M
Investing Cash Flow	-29.33M	-48.42M	-15.89M	25.86M	-12.63M	-73.28M
Financing Cash Flow	-9.98M	-9.67M	-6.22M	63.84M	213.24M	201.25M

Ehealth Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.44
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 3.44 is below the 20-day moving average (MA) of 3.57, below the 50-day MA of 3.87, and below the 200-day MA of 6.23, indicating a bearish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 45.28 is Neutral, neither overbought nor oversold. The STOCH value of 8.17 is Positive, 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 *	68 Neutral	$17.52B	11.72	10.43%	3.85%	9.75%	2.39%
SLQT	58 Neutral	$324.72M	―	0.82%	―	20.41%	93.09%
HUIZ	52 Neutral	$25.02M	11.44	-3.92%	―	0.48%	-127.19%
EHTH	48 Neutral	$106.34M	―	4.45%	―	16.19%	89.75%
RELI	45 Neutral	$4.20M	―	-223.86%	―	1.07%	96.67%
GOCO	45 Neutral	$88.10M	―	-13.38%	―	17.46%	60.17%
TIRX	41 Neutral	$86.48M	―	-12.03%	―	158.74%	14.86%

Ehealth Corporate Events

eHealth Appoints Derrick Duke as New CEO

On July 29, 2025, eHealth, Inc. announced the appointment of Derrick Duke as its new Chief Executive Officer, succeeding Fran Soistman, who will retire but remain on the Board of Directors. Duke, who brings extensive experience from his previous role as CEO of Magellan Health, will join eHealth on August 4, 2025, to begin the transition process, officially taking over as CEO on September 18, 2025. This leadership change is expected to drive eHealth into its next phase of growth, leveraging Duke’s financial acumen and operational expertise to continue delivering value to customers and stakeholders.

eHealth Extends CEO Tenure Amid Leadership Transition

On June 18, 2025, eHealth, Inc. announced that its CEO, Fran Soistman, will continue to serve until a successor is appointed, with a transition period extending to December 31, 2025. To ensure leadership stability during this period, Soistman will receive a retention cash award and a performance-based bonus, contingent on his continued service. Additionally, at the 2025 Annual Meeting of Stockholders, eHealth’s shareholders approved an amendment to the 2024 Equity Incentive Plan, increasing the maximum number of shares by 1,500,000, and ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for 2025.