Education
About Us
Working with TipRanks
Follow Us
WELL Health Technologies Corp (TSE:WELL)
TSX:WELL
RESEARCH TOOLSreports
Top Page
WELL Health Technologies Corp
(TSX:WELL)
77Outperform
Positive Factors
Acquisitions
Acquisitions are expected to add C$100M in run-rate revenue.
Financial Performance
WELL Health Technologies Corp. reported 3Q24 results with revenue up 23% year-over-year, topping estimates and consensus.
Partnerships
The strategic alliance expansion is seen as positive for both WELL and HEALWELL AI Inc. as it unlocks new revenue opportunities.
Negative Factors
Balance Sheet
The potential sale of Wisp and Circle Medical could improve the balance sheet with only modest impact to the bottom line.
WELL Health Technologies Corp (WELL) vs. S&P 500 (SPY)
Market Cap
C$1.25B
Dividend YieldN/A
Average Volume (3M)823.89K
Price to Earnings (P/E)16.3
Beta (1Y)1.11
Revenue Growth36.56%
EPS GrowthN/A
CountryCA
Employees1,507
SectorHealthcare
Sector Strength72
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)0.30
Shares Outstanding250,669,920
10 Day Avg. Volume775,188
30 Day Avg. Volume823,890
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.37
Price to Cash Flow (P/CF)5.70
P/FCF Ratio5.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$9.00Price Target Upside81.09% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
WELL Health Technologies Corp Business Overview & Revenue Model
Company DescriptionWELL Health Technologies Corp (WELL) is a Canadian digital healthcare company that operates primarily within the healthcare technology sector. The company focuses on modernizing the healthcare industry through digital transformation, offering a suite of products and services that include electronic medical records (EMR) solutions, telehealth services, cybersecurity protection for healthcare data, and digital health apps. WELL Health Technologies aims to improve patient care and clinical outcomes by integrating technology into healthcare practices.
How the Company Makes MoneyWELL Health Technologies generates revenue through multiple streams. The company earns income from its EMR business by charging subscription fees to healthcare providers for access to its software solutions. Additionally, WELL offers telehealth services, where it receives fees for virtual consultations facilitated through its platforms. The company also monetizes its cybersecurity and digital health solutions by providing these services to healthcare organizations, ensuring data protection and enhancing digital infrastructure. Furthermore, WELL Health's strategic acquisitions of healthcare technology companies and clinics contribute to its revenue, expanding its service offerings and market reach.
WELL Health Technologies Corp Financial Statement Overview
Summary
WELL Health Technologies Corp exhibits strong financial performance with consistent revenue growth and improving profitability indicators. The balance sheet reveals a solid capital structure with manageable debt levels, while cash flow metrics indicate robust operational cash generation. The company is well-positioned for future growth and financial stability, though attention to debt levels remains essential.Income Statement
WELL Health Technologies Corp has demonstrated strong revenue growth with significant increases year over year, particularly from 2023 to TTM 2024. The gross profit margin remains robust, indicating good efficiency in controlling direct costs. The net profit margin has improved significantly, reflecting enhanced profitability. EBIT and EBITDA margins show positive trajectories, highlighting operational efficiency improvements.85
Very Positive
Balance Sheet
The company's balance sheet shows a healthy equity position with a favorable debt-to-equity ratio, indicating prudent financial leverage. The return on equity has improved, signifying better utilization of shareholder funds. However, there is a moderate increase in total debt, which necessitates monitoring to ensure it doesn't affect financial stability.75
Positive
Cash Flow
The operating cash flow has shown strong growth, reflecting solid cash generation from operations. The free cash flow growth is impressive, supporting potential reinvestment or debt repayment. The operating cash flow to net income and free cash flow to net income ratios indicate a strong cash conversion cycle, enhancing financial flexibility.80
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 957.69M | 776.05M | 569.14M | 302.32M | 50.24M | 32.81M | Gross Profit |
| 388.83M | 372.27M | 303.29M | 153.69M | 21.22M | 10.99M | EBIT |
| 45.82M | 35.16M | 23.31M | -6.21M | -9.90M | -5.61M | EBITDA |
| 41.09M | 101.88M | 95.99M | 21.27M | -495.00K | -4.30M | Net Income Common Stockholders |
| 73.42M | 82.00K | 19.07M | -30.69M | -2.62M | -7.79M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 48.23M | 43.42M | 48.91M | 61.92M | 86.89M | 15.64M | Total Assets |
| 1.47B | 1.41B | 1.32B | 1.26B | 262.73M | 58.51M | Total Debt |
| 432.12M | 426.28M | 358.42M | 401.94M | 23.57M | 19.18M | Net Debt |
| 383.89M | 382.86M | 309.51M | 340.02M | -63.32M | 3.54M | Total Liabilities |
| 579.49M | 563.16M | 503.78M | 554.37M | 43.75M | 26.51M | Stockholders Equity |
| 810.84M | 767.67M | 732.34M | 618.24M | 217.37M | 31.97M |
| Cash Flow | Free Cash Flow | ||||
| 93.50M | 37.20M | 70.14M | 19.59M | -6.52M | -3.11M | Operating Cash Flow |
| 122.95M | 66.44M | 76.55M | 22.27M | -5.38M | -2.63M | Investing Cash Flow |
| -38.31M | -106.42M | -37.93M | -499.78M | -44.21M | -10.69M | Financing Cash Flow |
| -65.46M | 10.63M | -52.85M | 452.53M | 120.84M | 26.63M |
WELL Health Technologies Corp Technical Analysis
Negative
4.97
Price Trends
5.77
Negative
5.99
Negative
5.26
Negative
Market Momentum
-0.28
Positive
17.93
Positive
17.74
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WELL, the sentiment is Negative. The current price of 4.97 is below the 20-day moving average (MA) of 5.16, below the 50-day MA of 5.77, and below the 200-day MA of 5.26, indicating a bearish trend. The MACD of -0.28 indicates Positive momentum. The RSI at 17.93 is Positive, neither overbought nor oversold. The STOCH value of 17.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:WELL.
WELL Health Technologies Corp Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Performance Comparison
TSE:WELL
WELL Health Technologies Corp
4.14
0.47
12.81%
TSE:QIPT
Quipt Home Medical
3.34
-2.57
-43.49%
TSE:VHI
Vitalhub
10.15
4.15
69.17%
WELL Health Technologies Corp Earnings Call Summary
Earnings Call Date: Nov 7, 2024 | % Change Since: 9.96% | Next Earnings Date: May 5, 2025
Earnings Call Sentiment Positive
The earnings call was positive overall, with record-setting performances in revenue, EBITDA, and patient visits. Despite challenges like unrealized losses on investments and weather-related impacts, WELL Health's strategic initiatives and strong M&A pipeline position the company for continued growth.Highlights
Record Quarterly Performance
The third quarter of 2024 was one of the best in WELL Health's history, with record performances in revenue, adjusted EBITDA, free cash flow, patient visits, and organic growth.
Surpassed $1 Billion Revenue Run Rate
WELL Health surpassed $1 billion in annualized revenue run rate, one quarter ahead of schedule, representing a 30-fold increase over five years.
Strong Revenue and EBITDA Growth
Robust revenue growth of 35% in Canadian patient services and 23% overall organic growth, with adjusted EBITDA of $32.7 million reflecting 16% year-over-year growth.
Record Free Cash Flow
Adjusted free cash flow to shareholders increased by 69% year-over-year and 85% quarter-over-quarter, reaching $0.065 per share.
Significant Debt Reduction
Paid down significant debt, improving leverage ratio to approximately 2.5 from 2.67 in the previous quarter.
Record Patient Visits
Achieved a record 1.5 million patient visits in Q3 2024, a 41% year-over-year increase, with 31% organic growth.
Increased Revenue Guidance
Raised 2024 annual revenue guidance to between $985 million and $995 million.
Strong M&A Pipeline
17 LOIs and deals pending closure, representing over $100 million in annual revenue.
Circle Medical and Wisp Growth
Circle Medical's revenue increased by 61% year-over-year with adjusted EBITDA of $2.6 million, and Wisp achieved record revenue and adjusted EBITDA growth.
Lowlights
Unrealized Loss on HEALWELL AI Investment
Reported an IFRS net loss of $75.8 million in Q3 2024, primarily due to unrealized losses on WELL's investment in HEALWELL AI.
Impact of Hurricanes
Hurricanes Helen and Milton impacted CRH's revenue, resulting in a minimal revenue loss of approximately CAD 500,000 and an additional $1 to $1.5 million in Q4.
Delayed Billing and Cash Collections
CRH experienced delays in billing and cash collections due to a cybersecurity incident at its billing partner, Change Healthcare.
Company Guidance
In the Q3 2024 earnings call, WELL Health Technologies Corp. provided guidance that highlights several key performance metrics. The company reported record quarterly revenue of $251.7 million, a 23% year-over-year increase driven by 23% organic growth. Adjusted EBITDA reached $32.7 million, reflecting a 16% growth, while adjusted free cash flow to shareholders rose by 69% compared to Q3 2023. WELL surpassed a $1 billion annualized revenue run rate, achieving this milestone one quarter ahead of schedule. The company also increased its annual revenue guidance to between $985 million and $995 million, attributing the rise to recent clinic acquisitions and robust organic growth. Despite revenue growth, annual adjusted EBITDA guidance remains in the upper half of $125 million to $130 million. Additionally, WELL's leverage ratio improved to approximately 2.5, and the company expects its adjusted free cash flow available to shareholders to be around $55 million for 2024. The strategy includes continued strong execution across all business units, with a focus on enhanced profitability, capital efficiency, and organic growth.WELL Health Technologies Corp Corporate Events
WELL Health Technologies Expands with $100M Revenue Boost Through Acquisitions
Jan 14, 2025
WELL Health Technologies Corp. announced a significant expansion of its operations through the acquisition of seven new businesses since December 2024, contributing an additional $100 million in annualized revenue. These acquisitions, paid entirely in cash, include one of Canada’s largest physician recruitment firms, multiple primary care clinics in Canada, and a provider staffing company in the United States. With these strategic expansions, WELL Health aims to strengthen its position in the Canadian healthcare market, enhance its operational capabilities, and address physician shortages. Furthermore, the acquisition of Harmony Anesthesia Staffing in the U.S. bolsters its ability to provide comprehensive staffing solutions in the anesthesia sector, enhancing its growth potential and industry positioning.
WELL Health Rebrands and Expands with WELLSTAR
Dec 12, 2024
WELL Health Technologies Corp. has rebranded its subsidiary as WELLSTAR Technologies Corp. and raised $50.4 million in private capital, highlighting its focus on SaaS healthcare technology and its growth potential. The company has also completed two strategic acquisitions, boosting its pro forma revenue to over $70 million by 2025 and setting the stage for a potential spinout, offering investors a unique opportunity in this sector.
WELL Health Expands with Walmart Clinics Acquisition
Dec 2, 2024
WELL Health Technologies has completed the acquisition of Canadian clinical assets from Jack Nathan Health, expanding its presence with clinics in Walmart stores across Canada. This move strengthens WELL’s position as a major clinic operator while introducing a new ‘Affiliate Clinic’ business model to grow its healthcare network. The acquisition is expected to enhance WELL’s financial performance and service delivery by leveraging technology to improve healthcare accessibility.
WELL Health Surpasses $1 Billion Revenue Milestone
Nov 7, 2024
WELL Health Technologies Corp has achieved a milestone by reaching a $1 billion annualized revenue run-rate ahead of schedule, with a strong performance in Q3-2024, reporting a 27% increase in revenue compared to the same quarter last year. The company has also seen significant growth in patient visits and has increased its annual revenue guidance, showcasing its robust financial health and expansion capabilities.
WELL Health Expands with Walmart Clinic Acquisition
Nov 4, 2024
WELL Health Technologies Corp is set to acquire the Canadian clinical assets of Jack Nathan Health, expanding its clinic network with 16 owned clinics and 62 licensee clinics in Walmart locations across Canada. The acquisition supports WELL’s strategy to enhance healthcare delivery through technology, with a focus on profitability by 2025. This move solidifies WELL’s position as a leading healthcare provider in Canada, emphasizing its commitment to improving clinic operations and patient care.
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.