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MCI Onehealth Technologies, Inc. Class A (TSE:AIDX)
TSX:AIDX

MCI Onehealth Technologies, Inc. Class A (AIDX) AI Stock Analysis

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MCI Onehealth Technologies, Inc. Class A

(TSX:AIDX)

48Neutral
HEALWELL AI's stock is currently under pressure, primarily due to its negative financial performance and unattractive valuation. Despite significant strategic acquisitions and optimistic future growth prospects, the current financial health and bearish market technicals weigh heavily on the score. Investors should monitor for operational improvements and profitability milestones.
Positive Factors
Market Position
HEALWELL AI has transformed into a healthcare artificial intelligence (AI) company that identifies patients with rare diseases and offers other industry-related software to improve outcomes by integrating AI + Data + Science.
Revenue Growth
Orion is projected to generate more than C$100M in revenue in 2025 and over C$20M in adjusted EBITDA, which should more than double HEALWELL's revenue and bring the company to positive EBITDA in 2025.
Strategic Acquisitions
The transformational acquisition of two segments of Orion Health and C$3M of annualized cost-cutting projects revenue increases for 2025 and 2026.
Negative Factors
Capital Requirements
M&A activity will likely require additional capital and/or share issuances, which could impact current shareholders.
Financial Performance
Adjusted EBITDA loss of (C$5.6M) was wider than estimates and consensus.
Stock Dilution
The primary reason for the lower price target is due to factoring in a higher share count.

MCI Onehealth Technologies, Inc. Class A (AIDX) vs. S&P 500 (SPY)

MCI Onehealth Technologies, Inc. Class A Business Overview & Revenue Model

Company DescriptionMCI Onehealth Technologies, Inc. Class A (AIDX) is a healthcare technology company based in Canada. It operates within the healthcare sector, focusing on providing innovative solutions to enhance patient care and improve operational efficiencies in healthcare settings. The company offers a range of healthcare services and technology solutions, including primary care, specialty care, and digital health tools, aimed at optimizing patient outcomes and streamlining healthcare delivery.
How the Company Makes MoneyMCI Onehealth Technologies generates revenue through multiple streams. The primary source of income is its network of healthcare clinics and services, where it offers primary and specialty medical care to patients. The company also earns money by licensing its digital health technology solutions to other healthcare providers, enabling them to improve patient management and operational efficiency. Additionally, strategic partnerships and collaborations with other healthcare organizations and technology companies contribute to its revenue, allowing for the integration and expansion of its services across various platforms.

MCI Onehealth Technologies, Inc. Class A Financial Statement Overview

Summary
The financial performance of Healwell AI is strained, primarily due to significant net losses and negative cash flows. The income statement reveals challenges in profitability with negative margins, while the balance sheet shows a reasonable debt-to-equity ratio but low equity reliance. Cash flow issues further exacerbate the financial instability, necessitating improvements in cost control and revenue growth.
Income Statement
35
Negative
The income statement shows significant challenges with profitability. The company has a negative net profit margin of -91.44% for TTM, driven by substantial net losses. Revenue growth is erratic, with a drop from 2020 to 2021 and a slight increase in the most recent period. The EBIT and EBITDA margins are also negative, indicating operational inefficiencies and high costs relative to revenue.
Balance Sheet
40
Negative
The balance sheet reflects a moderate financial position with some concerns. The debt-to-equity ratio is approximately 0.28 for TTM, which is reasonable, suggesting manageable leverage. However, the equity ratio is low at 56.21%, indicating reliance on liabilities. The return on equity is negative due to net losses, highlighting profitability issues.
Cash Flow
30
Negative
Cash flow performance is weak, with negative free cash flow growth and a negative operating cash flow to net income ratio for TTM. The company is experiencing cash outflows from operations, which could strain liquidity. Despite financing activities providing cash inflows, the free cash flow remains negative.
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
38.97M7.32M10.42M47.82M38.57M46.29M
Gross Profit
-7.88M1.26M3.71M15.01M64.22M15.26M
EBIT
-94.44M-17.59M-17.55M-16.43M-842.00K523.00K
EBITDA
-16.44M-16.11M-13.94M-11.44M2.11M3.76M
Net Income Common Stockholders
-27.34M-31.60M-21.09M-15.67M-1.03M-122.00K
Balance SheetCash, Cash Equivalents and Short-Term Investments
9.68M19.16M1.80M7.68M1.27M1.52M
Total Assets
125.53M53.70M45.63M60.89M22.36M22.68M
Total Debt
22.20M20.93M17.42M14.35M15.04M15.95M
Net Debt
12.79M1.77M16.01M7.21M14.15M14.82M
Total Liabilities
51.86M32.23M32.13M31.14M22.12M20.42M
Stockholders Equity
63.89M12.65M11.78M28.03M114.00K2.14M
Cash FlowFree Cash Flow
-23.93M-10.86M-9.49M-9.47M3.99M3.09M
Operating Cash Flow
-22.62M-10.80M-8.35M-7.10M4.22M3.21M
Investing Cash Flow
-15.37M1.35M-1.17M-8.64M-234.00K-122.00K
Financing Cash Flow
28.24M27.20M3.78M21.99M-4.22M-2.89M

MCI Onehealth Technologies, Inc. Class A Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.34
Price Trends
50DMA
1.52
Negative
100DMA
1.70
Negative
200DMA
1.70
Negative
Market Momentum
MACD
-0.06
Positive
RSI
41.01
Neutral
STOCH
31.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AIDX, the sentiment is Negative. The current price of 1.34 is below the 20-day moving average (MA) of 1.45, below the 50-day MA of 1.52, and below the 200-day MA of 1.70, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 41.01 is Neutral, neither overbought nor oversold. The STOCH value of 31.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:AIDX.

MCI Onehealth Technologies, Inc. Class A Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
C$1.08B13.983.99%18.51%
51
Neutral
$5.19B3.13-40.94%2.95%17.94%2.00%
48
Neutral
C$286.40M-68.57%101.04%65.63%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:AIDX
MCI Onehealth Technologies, Inc. Class A
1.34
-0.23
-14.65%
TSE:WELL
WELL Health Technologies Corp
3.77
0.23
6.50%

MCI Onehealth Technologies, Inc. Class A Earnings Call Summary

Earnings Call Date: Mar 26, 2025 | % Change Since: -16.25% | Next Earnings Date: May 20, 2025
Earnings Call Sentiment Neutral
Healwell AI's earnings call reflects a strong growth trajectory fueled by strategic acquisitions and expansion in AI and data science segments. Despite facing challenges such as increased net loss and adjusted EBITDA loss, the company has made significant progress in revenue growth and strategic partnerships. The impact of external factors like the Inflation Reduction Act poses challenges, but the company remains optimistic about future growth and profitability.
Highlights
Significant Revenue Growth
Healwell achieved quarterly revenues of $13.7 million in Q3 2024, compared to $1.6 million in the same quarter last year, driven by recent acquisitions.
AI and Data Science Segment Expansion
The AI and data science segment experienced an impressive 2,800% revenue growth this quarter as compared to the same quarter of 2023.
Increase in Master Service Agreements
Healwell's AI and data science subsidiaries executed 5 new MSAs in Q3 2024, bringing the cumulative total to 27, including partnerships with 7 of the top 10 largest pharmaceutical companies.
Strategic Acquisitions and Expansion
Acquired VeroSource Solutions and BioPharma Services, enhancing clinical research capabilities and financial profile. Expanded clinical research services for the pharmaceutical industry.
Prix Galien USA 2024 Award
Pentavere received the prestigious Prix Galien USA 2024 Award for Best Digital Health start-up in AI for life sciences.
Lowlights
Adjusted EBITDA Loss
Healwell reported an adjusted EBITDA loss of $3.4 million in Q3 2024 compared to a loss of $2.5 million in Q3 2023.
Net Loss Increase
Reported a net loss of $11.1 million in Q3 2024, compared to a loss of $7.7 million in Q3 2023.
Impact of Inflation Reduction Act
BioPharma's early-stage trial revenue expectations were impacted due to volatility in the pharmaceutical industry caused by the Inflation Reduction Act.
Company Guidance
During the Q3 2024 earnings call for Healwell AI, the company provided a comprehensive overview of its financial and strategic progress. Key financial metrics included a significant increase in quarterly revenue to CAD 13.7 million from CAD 1.6 million the previous year, primarily driven by strategic acquisitions. Adjusted gross profit rose to CAD 5.9 million, with a gross margin of 43%, up from 20% in Q3 2023. However, the company reported an adjusted EBITDA loss of CAD 3.4 million and a net loss of CAD 11.1 million. The call highlighted the company's impressive growth trajectory, with annualized revenue run rate increasing eightfold to CAD 58.4 million. Strategic acquisitions, such as VeroSource Solutions and BioPharma Services, were noted as transformational, enhancing Healwell's financial profile and capabilities. The company anticipates reaching a CAD 100 million revenue run rate and profitability on an adjusted EBITDA basis in the near future. Healwell also emphasized its expansion in AI solutions and clinical research, with 27 signed master service agreements with life sciences partners, including seven of the top ten largest pharmaceutical companies.

MCI Onehealth Technologies, Inc. Class A Corporate Events

M&A TransactionsBusiness Operations and Strategy
HEALWELL Acquires Orion Health, Strengthening Global Leadership in Healthcare AI
Positive
Apr 1, 2025

HEALWELL AI Inc. has completed the acquisition of Orion Health, a global healthcare intelligence platform, for approximately NZD$175 million. This acquisition is set to transform HEALWELL into a global leader in healthcare data interoperability and AI, enhancing its market position and enabling it to deliver improved healthcare outcomes through AI-driven insights. The acquisition is expected to bring substantial revenue synergies, operational efficiencies, and cost savings, strengthening HEALWELL’s financial profile and expanding its reach in the public sector.

M&A TransactionsBusiness Operations and Strategy
WELL Health to Acquire Major Stake in HEALWELL AI Amid Orion Health Acquisition
Positive
Mar 31, 2025

HEALWELL AI Inc. announced that WELL Health Technologies Corp. intends to exercise its call option to acquire a significant portion of HEALWELL’s shares, which will coincide with HEALWELL’s acquisition of Orion Health Holdings Limited. This move will give WELL substantial economic interest and voting rights in HEALWELL, allowing it to nominate a majority of the company’s board of directors, thereby strengthening its influence and control over HEALWELL’s strategic direction.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
HEALWELL AI Inc. Reports Record Growth and Strategic Acquisition
Positive
Mar 26, 2025

HEALWELL AI Inc. reported a record revenue growth of 433% in 2024, reaching approximately $39 million, and anticipates further growth with the acquisition of Orion Health, a global leader in healthcare technology. The acquisition, expected to close on April 1, 2025, is set to significantly enhance HEALWELL’s market position by integrating Orion’s robust SaaS platform, which manages healthcare data for over 150 million patients worldwide, and is projected to make HEALWELL profitable on an Adjusted EBITDA basis. This strategic move, supported by substantial financing arrangements, positions HEALWELL to capitalize on expanding opportunities within the Canadian healthcare ecosystem and beyond.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
HEALWELL AI Reports Record Growth and Prepares for Transformative Acquisition
Positive
Mar 26, 2025

HEALWELL AI Inc. reported a record revenue growth of 433% in 2024, reaching approximately $39 million, driven by strategic acquisitions and expansion in the life sciences sector. The company anticipates the transformative acquisition of Orion Health, a leader in healthcare technology, which is expected to close on April 1, 2025, and is projected to significantly enhance HEALWELL’s profitability and market positioning.

Financial Disclosures
HEALWELL AI to Release 2024 Financial Results and Host Conference Call
Neutral
Mar 20, 2025

HEALWELL AI Inc. has announced it will release its financial results for the fourth quarter and year ending December 31, 2024, on March 26, 2025. The company will hold a conference call and webcast on the same day to discuss these results, reflecting its ongoing commitment to transparency and stakeholder engagement.

Private Placements and FinancingM&A Transactions
HEALWELL Secures $50M Credit for Orion Health Acquisition
Positive
Mar 10, 2025

HEALWELL AI Inc. has secured a $50 million credit agreement led by Scotiabank and RBC to support its acquisition of Orion Health, a global healthcare intelligence platform. This agreement, along with other financing arrangements, ensures over $100 million in funding to facilitate the acquisition, marking a significant step towards closing the deal by April 1, 2025. The acquisition is expected to strengthen HEALWELL’s market position by expanding its capabilities in healthcare intelligence.

Business Operations and Strategy
HEALWELL AI to Showcase Innovations at Major Investor Conferences
Positive
Feb 27, 2025

HEALWELL AI Inc. announced its participation in the upcoming Scotiabank TMT and ROTH Investor Conferences, where CEO Dr. Alexander Dobranowski will engage with investors and industry leaders. These conferences provide HEALWELL an opportunity to showcase its innovative AI-powered healthcare solutions, emphasizing its role in transforming preventative care and strengthening its industry positioning.

Product-Related AnnouncementsBusiness Operations and Strategy
HEALWELL AI’s VeroSource Launches Digital Twin Technology for Healthcare Optimization
Positive
Feb 26, 2025

HEALWELL AI Inc.’s subsidiary, VeroSource Solutions Inc., has launched Digital Twin technology on its VS Data-as-a-Service Platform, offering real-time insights and advanced data visualization to optimize healthcare operations. This innovation allows healthcare managers to enhance efficiency, reduce costs, and improve patient care by simulating operations without disruption. The technology integrates various data sources, such as population demographics and disease trends, to support precise decision-making, aligning with HEALWELL’s vision of leveraging AI to improve healthcare outcomes.

Product-Related AnnouncementsBusiness Operations and Strategy
HEALWELL AI’s Khure Health Achieves Major Growth in AI-Powered Disease Detection
Positive
Feb 24, 2025

HEALWELL AI Inc.’s subsidiary, Khure Health, has reported significant growth in both user adoption and partnerships with life sciences companies for its AI-powered disease detection co-pilots. In Q4-2024, Khure’s technology identified over 43,000 high-risk patients, marking a 22% increase from the previous quarter and a 500% year-over-year growth. The company has also signed four new Master Services Agreements with major pharmaceutical partners, bringing the total to 16, including collaborations with seven of the world’s top ten pharmaceutical firms. This expansion highlights Khure’s growing influence in integrating AI into healthcare workflows, aiming to improve patient outcomes through earlier disease detection.

Product-Related AnnouncementsBusiness Operations and Strategy
HEALWELL’s Pentavere Validates DARWEN™ AI in Lung Cancer Treatment Study
Positive
Feb 13, 2025

HEALWELL AI Inc.’s subsidiary, Pentavere, has published a study in the ‘Journal of Liquid Biopsy’ validating its DARWEN™ AI platform as a leading clinical decision support tool in oncology. The study, conducted in collaboration with Princess Margaret Cancer Centre, highlights the platform’s ability to save time and improve lung cancer treatment through the use of liquid biopsies, which offer a less invasive alternative to traditional methods. By enabling fast and accurate data extraction, DARWEN™ AI is advancing personalized cancer care and precision medicine.

M&A Transactions
HEALWELL AI Inc. Secures Approval to Acquire Orion Health
Positive
Feb 10, 2025

HEALWELL AI Inc. has received approval from the Overseas Investment Office of New Zealand to acquire Orion Health Holdings Limited, a global leader in healthcare technology. This strategic acquisition will expand HEALWELL’s capabilities by integrating Orion’s healthcare information exchange platforms and government client base, significantly enhancing its market position and operational scope.

M&A TransactionsBusiness Operations and Strategy
HEALWELL AI Inc. Announces Strategic Optimization Ahead of Orion Acquisition
Neutral
Feb 3, 2025

HEALWELL AI Inc. announced a strategic cost optimization initiative aimed at achieving $3 million in annual savings to streamline operations in preparation for its acquisition of Orion Health. This initiative, which includes headcount reductions and cutting costs, is designed to maximize synergies and drive value from the acquisition, positioning the company for long-term growth. The integration of Orion is expected to bring significant cost and revenue synergies, while the company’s AI business units will continue to grow. Additionally, HEALWELL’s minimal exposure to U.S. tariffs on Canadian services positions it favorably in the current trade environment.

Private Placements and FinancingM&A Transactions
HEALWELL AI Secures $30M for Orion Health Acquisition
Positive
Jan 28, 2025

HEALWELL AI Inc. has successfully closed the $30 million convertible debt tranche of its $55 million bought deal financing, which will aid in funding its acquisition of Orion Health. This transaction, co-led by major financial institutions, showcases HEALWELL’s strategic expansion into international markets, potentially enhancing its industry positioning and operational capabilities.

Private Placements and FinancingM&A Transactions
HEALWELL AI Raises $25.5M for Orion Health Acquisition
Positive
Jan 21, 2025

HEALWELL AI Inc. has successfully raised $25.5 million from the equity tranche of its $55 million bought deal financing. The funds will be used for the acquisition of Orion Health, a move that positions HEALWELL to enhance its capabilities in the healthcare AI sector. The completion of the convertible debenture portion of the financing is anticipated by January 28, 2025, which will further support the strategic acquisition and growth plans.

Private Placements and FinancingM&A Transactions
HEALWELL AI Secures $25.5M to Fund Orion Health Acquisition
Positive
Jan 21, 2025

HEALWELL AI has successfully completed the equity tranche of its $55 million bought deal financing, raising $25.5 million to fund the acquisition of Orion Health. This move aims to enhance HEALWELL’s capabilities in healthcare AI, pending the completion of the convertible debenture portion by January 28, 2025. If conditions for the acquisition are unmet, the proceeds will be returned to investors, maintaining transparency with stakeholders.

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.