Teladoc (TDOC) AI Stock Analysis

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Teladoc

(NYSE:TDOC)

41Neutral

Teladoc's overall stock score reflects significant financial and operational challenges, with persistent net losses and high leverage weighing heavily. Technical indicators suggest a bearish outlook, while valuation remains unattractive due to ongoing losses. Mixed signals from the earnings call, with some growth potential, are countered by substantial risks, particularly in the BetterHelp segment and health plan channels.

Positive Factors

Growth Acceleration

Teladoc is taking the right steps to accelerate growth through initiatives like the Catapult Health acquisition and partnerships with companies like Amazon.

Strategic Initiatives

Teladoc recently announced new initiatives including an integration with Eli Lilly, partnership with Amazon, and acquisition of Catapult Health.

Negative Factors

Profitability Challenges

The estimated decline in BetterHelp's adjusted EBITDA by 22% year-over-year suggests challenges in maintaining profitability.

Revenue Guidance

Sensor Tower trends suggest 1Q’25 total revenue is tracking towards the low-end of Teladoc’s revenue guidance and ~2% below consensus estimates.

User Engagement

Global BetterHelp MAUs declined 1.3% y/y, indicating BetterHelp’s 1Q revenue growth will likely be at the bottom-end of segment guidance.

Teladoc (TDOC) vs. S&P 500 (SPY)

Market Cap

$1.20B

Dividend YieldN/A

Average Volume (3M)5.62M

Price to Earnings (P/E)―

Beta (1Y)1.35

Revenue Growth-1.26%

EPS Growth-338.56%

CountryUS

Employees4,620

SectorHealthcare

Sector Strength66

IndustryMedical - Healthcare Information Services

Share Statistics

EPS (TTM)-5.88

Shares Outstanding175,277,830

10 Day Avg. Volume5,795,583

30 Day Avg. Volume5,617,840

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.57

Price to Cash Flow (P/CF)4.30

P/FCF Ratio3.90

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$10.81

Price Target Upside58.27% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering21

Teladoc Business Overview & Revenue Model

Company DescriptionTeladoc Health, Inc. provides virtual healthcare services in the United States and internationally. The company offers a portfolio of services and solutions covering non-urgent, episodic, chronic, and complicated medical conditions, including diabetes, hypertension, chronic kidney disease, cancer, congestive heart failure, and mental health conditions. It offers a range of programs and services, including primary and specialty care telehealth solutions, chronic condition management, expert medical services, mental health solutions, and platform and program services. The company serves employers, health plans, hospitals and health systems, and insurance and financial services companies, as well as individual members. It offers its products and services under the Teladoc, Livongo, and BetterHelp brands. The company was formerly known as Teladoc, Inc. and changed its name to Teladoc Health, Inc. in August 2018. The company was incorporated in 2002 and is headquartered in Purchase, New York.

How the Company Makes MoneyTeladoc generates revenue primarily through a subscription-based model, where individuals or organizations pay for access to its virtual healthcare services. Key revenue streams include membership fees from health plans, employers, and individual users who subscribe to its telemedicine services. Additionally, the company earns income from fees charged per virtual visit, which are paid by health plans or directly by patients. Significant partnerships with healthcare providers, insurance companies, and employers enhance its market reach and contribute to its earnings. Teladoc also offers specialized services and second opinion consultations, which further diversify its revenue sources.

Teladoc Financial Statement Overview

Summary

Teladoc faces significant financial challenges with consistent net losses and high leverage. While there are strengths in cash flow generation, operational inefficiencies and competitive pressures in revenue growth present major hurdles. Improvements in profitability and debt management are crucial.

Income Statement

Negative

Teladoc's income statement reveals significant challenges with profitability. The company has consistently reported negative net income and EBIT margins, indicating operational inefficiencies or high expenses. Gross profit margins reflect solid operational revenue, yet the inability to achieve net profitability and negative EBIT margins are concerning. Revenue growth has slowed, suggesting potential market saturation or competitive pressures.

Balance Sheet

Neutral

Teladoc's balance sheet shows moderate stability but is pressured by high debt levels. The debt-to-equity ratio remains high, indicating potential financial leverage risks. Stockholders' equity has decreased, which may affect future financing options. However, the company maintains a reasonable equity ratio, demonstrating some level of asset coverage by equity.

Cash Flow

Neutral

The cash flow statement shows a mixed picture. Free cash flow has grown, which is positive, yet the operating cash flow relative to net income indicates inefficiencies in converting sales into cash. The free cash flow to net income ratio is positive, suggesting some capacity to generate cash despite ongoing losses.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
2.57B	2.60B	2.41B	2.03B	1.09B
	Gross Profit
1.82B	1.84B	1.66B	1.38B	703.13M
	EBIT
-1.02B	-248.55M	13.20B	-238.99M	-418.19M
	EBITDA
-587.01M	154.00M	-13.38B	-84.67M	-438.01M
	Net Income Common Stockholders
-1.00B	-220.37M	-13.66B	-428.79M	-485.14M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.30B	1.12B	918.18M	896.02M	786.57M
	Total Assets
3.52B	4.39B	4.35B	17.73B	17.76B
	Total Debt
1.58B	1.59B	1.57B	1.27B	1.47B
	Net Debt
286.29M	468.60M	655.15M	373.96M	731.97M
	Total Liabilities
2.03B	2.07B	2.04B	1.69B	1.87B
	Stockholders Equity
1.49B	2.33B	2.31B	16.05B	15.88B
Cash Flow		Free Cash Flow
282.89M	193.67M	16.53M	130.06M	-79.55M
	Operating Cash Flow
293.68M	350.02M	189.29M	193.99M	-53.51M
	Investing Cash Flow
-124.05M	-156.35M	-167.74M	-72.98M	-590.98M
	Financing Cash Flow
8.31M	10.85M	6.50M	40.95M	859.14M

Teladoc Technical Analysis

Technical Analysis Sentiment

Negative

Last Price6.83

Price Trends

50DMA

9.49

Negative

100DMA

9.82

Negative

200DMA

9.20

Negative

Market Momentum

MACD

-0.61

Negative

RSI

31.18

Neutral

STOCH

23.91

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TDOC, the sentiment is Negative. The current price of 6.83 is below the 20-day moving average (MA) of 7.72, below the 50-day MA of 9.49, and below the 200-day MA of 9.20, indicating a bearish trend. The MACD of -0.61 indicates Negative momentum. The RSI at 31.18 is Neutral, neither overbought nor oversold. The STOCH value of 23.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TDOC.

Teladoc Risk Analysis

Teladoc disclosed 57 risk factors in its most recent earnings report. Teladoc reported the most risks in the “Ability to Sell” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Teladoc Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NHC	67 Neutral	$1.42B	14.10	10.79%	2.65%	15.25%	51.77%
PHR	59 Neutral	$1.40B	―	-22.67%	―	17.83%	59.64%
ARQT	57 Neutral	$1.54B	―	-113.76%	―	229.74%	70.23%
Sector *	51 Neutral	$5.19B	3.12	-41.08%	2.95%	17.98%	2.02%
SDGR	50 Neutral	$1.88B	―	-38.58%	―	-4.21%	-544.81%
TDOC	41 Neutral	$1.20B	―	-52.46%	―	-1.26%	-338.56%
ELVN	35 Underperform	$810.04M	―	-32.04%	―	―	12.85%

* Healthcare Sector Average

Performance Comparison

TDOC

Teladoc

6.83

-6.47

-48.65%

NHC

National Healthcare

92.13

4.17

4.74%

PHR

Phreesia

23.97

1.56

6.96%

ARQT

Arcutis Biotherapeutics

13.01

4.07

45.53%

SDGR

Schrodinger

25.75

1.26

5.14%

ELVN

Enliven Therapeutics

16.53

-1.09

-6.19%

Teladoc Earnings Call Summary

Earnings Call Date: Feb 26, 2025 | % Change Since: -37.85% | Next Earnings Date: Apr 30, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed view with significant growth in membership and international expansion, counterbalanced by revenue declines and challenges in BetterHelp and health plan channels. The company acknowledged headwinds but also highlighted strategic priorities and growth areas.

Highlights

Membership and Visit Volume Growth

In 2024, Teladoc Health added over 4 million members in the U.S. and grew underlying visit volumes by 6%. Chronic Care management enrollment increased by 4%, and the company saw the strongest year of bookings since 2020 in their employer channel.

International Expansion Success

Teladoc's international business delivered mid-teens revenue growth in 2024. Notable expansions included partnerships in France for virtual psychiatry services and combining virtual services with proprietary devices in Canada.

BetterHelp Milestone

The BetterHelp segment reached a milestone of serving over 5 million people and maintained a high Net Promoter Score above 70. International revenue accounted for approximately 20% of BetterHelp's segment revenues.

Lowlights

Revenue Decrease

Full year 2024 consolidated revenue of $2.6 billion decreased 1% versus 2023. The BetterHelp segment revenue declined by 8% for the year.

BetterHelp Challenges

The BetterHelp business operated in a challenging environment, impacting financial performance in 2024. The average revenue per user declined sequentially due to international expansion with lower pricing.

Health Plan Channel Pressures

Challenges in the health plan channel due to macro factors and broader challenges. This impacted the sales and growth dynamics for Teladoc.

Chronic Care Client Loss

Teladoc was informed by a client of plans to transition a portion of their business during the second quarter, impacting Chronic Care enrollment growth.

Company Guidance

During the Teladoc Health Q4 2024 earnings call, the company provided guidance for 2025, highlighting several key metrics and strategic priorities. For the full year 2025, Teladoc expects consolidated revenue to be between $2.47 billion and $2.58 billion, with consolidated adjusted EBITDA projected in the range of $278 million to $319 million. The company anticipates free cash flow of $190 million to $220 million, representing a year-over-year increase of 12% to 30%. In terms of segment performance, the Integrated Care segment is expected to achieve flat to 3% revenue growth year-over-year, with an adjusted EBITDA margin of 14.8% plus or minus 50 basis points. Meanwhile, the BetterHelp segment is projected to see a revenue decline of 3.75% to 9.75% compared to 2024, with an adjusted EBITDA margin between 6.25% and 7.75%. Teladoc is focused on driving growth through increased member engagement, enhanced value per visit, productivity improvements, and international expansion. The company also plans to invest in its offerings and explore synergies across its mental health services, including BetterHelp's initiatives to expand payer coverage.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.