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Ehealth (EHTH)
NASDAQ:EHTH
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Ehealth
(NASDAQ:EHTH)
Rating:54Neutral
Price Target:
$4.00
▼(-1.48% Downside)
Positive Factors
Leadership Change
The appointment of Derrick Duke as CEO is expected to drive growth and strategic improvements, leveraging his financial acumen and operational expertise.
AI Implementation
AI voice agents enhance operational efficiency and customer service, potentially leading to long-term cost savings and improved customer retention.
Improved Guidance
Increased revenue and earnings guidance reflects strong performance and confidence in future growth, signaling robust business fundamentals.
Negative Factors
Regulatory Challenges
Regulatory impacts on Medicare enrollments pose challenges, potentially affecting revenue growth and market positioning in the long term.
Cash Flow Issues
Persistent cash flow challenges can strain financial flexibility and limit investment in growth initiatives, impacting long-term sustainability.
Revenue Decline
Declining revenue growth indicates potential market contraction and competitive pressures, which could hinder long-term business expansion.
Ehealth (EHTH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$124.06M
Dividend YieldN/A
Average Volume (3M)558.44K
Price to Earnings (P/E)―
Beta (1Y)0.67
Revenue Growth16.19%
EPS Growth89.75%
CountryUS
Employees1,773
SectorFinancial
Sector Strength70
IndustryInsurance - Brokers
Share Statistics
EPS (TTM)-1.26
Shares Outstanding30,557,180
10 Day Avg. Volume262,270
30 Day Avg. Volume558,436
Financial Highlights & Ratios
PEG Ratio-0.55
Price to Book (P/B)0.30
Price to Sales (P/S)0.52
P/FCF Ratio-8.83
Enterprise Value/Market Cap3.87
Enterprise Value/Revenue0.88
Enterprise Value/Gross Profit0.88
Enterprise Value/Ebitda6.72
Forecast
1Y Price Target
$7.50Price Target Upside84.73% Upside
Rating ConsensusHold
Number of Analyst Covering4
Ehealth Business Overview & Revenue Model
Company DescriptioneHealth, 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 MoneyEhealth 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 Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 10, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive developments, such as increased guidance and successful AI implementations, alongside challenges like regulatory impacts on enrollments and financial losses. The sentiment is balanced with a slight lean towards optimism due to strategic adjustments and future potential in the Medicare market.Q2-2025 Updates
Positive Updates
Increase in Full Year 2025 Guidance
The company increased its full-year 2025 revenue and earnings guidance, reflecting strong performance to date. Total revenue for 2025 is now expected to be in the range of $525 million to $565 million, an increase from the prior guidance of $510 million to $550 million.
Positive Developments in Broker Commission Rates
CMS published favorable maximum broker commission rates for plan year 2026, exceeding expectations and correcting previous weaker increases.
AI Voice Agent Pilot Success
The successful pilot of AI voice agents improved call center productivity and customer experience, with plans to deploy the tool at scale for the upcoming AEP.
Improved Medicare Advantage Cohort Performance
The January 2025 Medicare Advantage cohort outperformed its predecessor cohort across several key metrics, including retention and approved to paid ratio.
Strong Cash Position
eHealth ended the quarter with $105.2 million in cash, cash equivalents, and short-term marketable securities, reflecting strong collections from new Medicare enrollments.
Negative Updates
Regulatory Impact on Medicare Enrollments
There was a decline in year-over-year second-quarter Medicare enrollments due to regulatory changes limiting dual-eligible beneficiaries from switching plans outside main enrollment periods.
Q2 Financial Losses
Second-quarter GAAP net loss was $17.4 million, and adjusted EBITDA was negative $14.1 million.
Challenges in the Employer and Individual Segment
Revenue for the Employer and Individual segment decreased significantly to $2.7 million from $6.6 million, with a segment gross loss of $0.3 million.
Potential Medicare Advantage Market Volatility
Anticipated geographic service area reductions, benefit reductions, and potential plan noncommissionability could lead to a disruptive AEP similar to last year.
Company Guidance
In the recent eHealth conference call, the company provided updated guidance for the fiscal year 2025 based on their strong second-quarter performance. They adjusted their total revenue expectations to a range of $525 million to $565 million, up from the previous guidance of $510 million to $550 million. GAAP net income is now projected to be between $5 million and $26 million, compared to the prior range of a $10 million net loss to a $15 million net income. Adjusted EBITDA guidance was also increased to a range of $55 million to $75 million, from the earlier range of $35 million to $60 million. These updates reflect positive outcomes in Medicare Advantage enrollment and retention trends, despite the anticipated volatility in the upcoming Annual Enrollment Period (AEP). The company highlighted improvements in their telesales structure and the integration of AI voice agents, which are expected to enhance customer service and operational efficiency.Ehealth Financial Statement Overview
Summary
Ehealth's financial performance is mixed. While profitability has improved, the decline in revenue growth 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.45
Neutral
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.60
Neutral
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.40
Negative
| 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
Positive
4.06
Price Trends
3.79
Positive
4.26
Negative
6.14
Negative
Market Momentum
0.07
Negative
55.97
Neutral
33.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EHTH, the sentiment is Positive. The current price of 4.06 is above the 20-day moving average (MA) of 3.80, above the 50-day MA of 3.79, and below the 200-day MA of 6.14, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 55.97 is Neutral, neither overbought nor oversold. The STOCH value of 33.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EHTH.
Ehealth Risk Analysis
Ehealth disclosed 43 risk factors in its most recent earnings report. Ehealth reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ehealth Peers Comparison
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.10B | 11.52 | 9.93% | 3.73% | 9.70% | 1.14% | |
61 Neutral | $338.72M | ― | 10.66% | ― | 15.50% | ― | |
54 Neutral | $124.06M | ― | 4.45% | ― | 16.19% | 89.75% | |
52 Neutral | $27.54M | 11.44 | -3.92% | ― | 0.48% | -127.19% | |
45 Neutral | $77.70M | ― | -13.38% | ― | 17.46% | 60.17% | |
41 Neutral | $75.56M | ― | -11.18% | ― | 624.24% | 85.46% | |
38 Underperform | $3.59M | ― | -223.86% | ― | 1.07% | 96.67% |
* Financial Sector Average
Performance Comparison
EHTH
Ehealth
4.06
0.20
5.18%
RELI
Reliance Global Group
0.78
-1.98
-71.74%
HUIZ
Huize Holding
2.83
-0.72
-20.28%
TIRX
Tian Ruixiang Holdings
3.09
-5.76
-65.08%
SLQT
SelectQuote
2.10
0.08
3.96%
GOCO
GoHealth
4.86
-3.97
-44.96%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.