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WELL Health Technologies Corp (TSE:WELL)
TSX:WELL

WELL Health Technologies Corp (WELL) AI Stock Analysis

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WELL Health Technologies Corp

(TSX:WELL)

Rating:66Neutral
Price Target:
C$5.00
▲(5.71%Upside)
The overall stock score reflects strong corporate events and positive technical momentum, offset by valuation concerns due to negative earnings. Financial performance shows growth potential but is hindered by profitability challenges and rising debt levels.
Positive Factors
Innovation
The launch of Nexus AI, an AI-powered clinical documentation solution, and government funding support represents a focused effort on innovation and cost optimization.
Revenue Growth
WELL Health Technologies reported 1Q25 results with revenue up 32% year-over-year and adjusted EBITDA of C$27.6M, beating estimates on the top line.
Negative Factors
Financial Reporting
WELL announced it will be delayed in filing Q4/24 financials resulting from accounting implications related to the Company’s non-wholly owned subsidiary Circle Medical.
Regulatory Issues
Circle received a request for the voluntary production of documents and information from the Civil Division of the US Attorney’s Office for the Northern District of California investigating certain billing practices.

WELL Health Technologies Corp (WELL) vs. iShares MSCI Canada ETF (EWC)

WELL Health Technologies Corp Business Overview & Revenue Model

Company DescriptionWELL Health Technologies Corp (WELL) is a Canadian digital healthcare company that operates primary healthcare facilities and provides digital health solutions. The company is focused on leveraging technology to improve healthcare outcomes and efficiency. WELL's core services include a network of primary healthcare clinics, electronic medical records (EMR) software, telehealth services, and digital apps that facilitate patient engagement and care management.
How the Company Makes MoneyWELL Health Technologies Corp generates revenue through multiple streams, primarily from its healthcare clinics, digital health solutions, and technology services. The company's primary healthcare clinics generate income through patient visits and associated medical services. WELL's digital health solutions, such as electronic medical records (EMR) software, provide recurring revenue through subscription fees paid by healthcare providers and clinics. Telehealth services also contribute to the company's earnings by enabling remote consultations and virtual care, which are monetized through direct fees or partnerships with healthcare providers and insurance companies. Additionally, WELL engages in strategic acquisitions and partnerships to expand its service offerings and customer base, further driving revenue growth.

WELL Health Technologies Corp Earnings Call Summary

Earnings Call Date:May 14, 2025
(Q3-2024)
|
% Change Since: 12.89%|
Next Earnings Date:Aug 07, 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.
Q3-2024 Updates
Positive Updates
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.
Negative Updates
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 Financial Statement Overview

Summary
WELL Health Technologies Corp is experiencing strong revenue growth but faces challenges in achieving sustainable profitability. While the balance sheet indicates a stable equity position, rising debt levels could become a concern if not managed properly. Cash flow instability suggests a need for improved operational efficiency and cost control to support long-term financial health.
Income Statement
70
Positive
WELL Health Technologies Corp has shown robust revenue growth, with a significant increase in total revenue from 2020 to TTM 2025. However, the company has struggled to maintain profitability, evidenced by negative EBIT and net income in the TTM period. Despite strong EBITDA in 2024, the negative trajectory in TTM indicates challenges in cost management or operational inefficiencies.
Balance Sheet
65
Positive
The balance sheet reflects a stable equity position with a consistent increase in stockholders' equity over the years. However, the debt levels have also increased, leading to a moderate debt-to-equity ratio, which could pose risks if profitability does not improve. The equity ratio remains healthy, indicating a solid asset base.
Cash Flow
60
Neutral
Cash flow management shows mixed results. The company has positive operating cash flow but struggles with free cash flow, which turned negative in the TTM period. This indicates potential issues with capital expenditure or operating efficiency. The fluctuations in free cash flow growth suggest instability in cash generation.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue982.26M919.69M776.05M569.14M302.32M50.24M
Gross Profit360.96M363.01M372.27M303.29M153.69M21.22M
EBITDA-48.66M122.52M101.88M95.99M21.27M-495.00K
Net Income-29.05M32.61M82.00K19.07M-30.69M-2.62M
Balance Sheet
Total Assets1.81B1.81B1.41B1.32B1.26B262.73M
Cash, Cash Equivalents and Short-Term Investments103.16M131.67M43.42M48.91M61.92M86.89M
Total Debt474.24M425.09M426.28M358.42M401.94M23.57M
Total Liabilities900.98M877.55M563.16M503.78M554.37M43.75M
Stockholders Equity834.43M867.61M767.67M732.34M618.24M217.37M
Cash Flow
Free Cash Flow-10.20M-6.70M37.20M70.14M19.59M-6.52M
Operating Cash Flow9.86M9.52M66.44M76.55M22.27M-5.38M
Investing Cash Flow-103.44M-60.23M-106.42M-37.93M-499.78M-44.21M
Financing Cash Flow142.54M133.50M10.63M-52.85M452.53M120.84M

WELL Health Technologies Corp Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.73
Price Trends
50DMA
4.07
Positive
100DMA
4.47
Positive
200DMA
5.08
Negative
Market Momentum
MACD
0.16
Negative
RSI
73.11
Negative
STOCH
89.85
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WELL, the sentiment is Positive. The current price of 4.73 is above the 20-day moving average (MA) of 4.11, above the 50-day MA of 4.07, and below the 200-day MA of 5.08, indicating a neutral trend. The MACD of 0.16 indicates Negative momentum. The RSI at 73.11 is Negative, neither overbought nor oversold. The STOCH value of 89.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:WELL.

WELL Health Technologies Corp Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSDR
72
Outperform
$309.61M2.4233.87%2.21%-29.54%667.77%
TSNLH
70
Outperform
C$23.40M20.304.53%4.09%
66
Neutral
C$1.22B30.45-3.53%17.19%-191.01%
62
Neutral
C$1.63B-3.31%1.22%9.88%11.07%
61
Neutral
C$186.99M-4.48%-0.69%8.08%
52
Neutral
$7.53B0.20-61.87%2.28%16.72%1.10%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:WELL
WELL Health Technologies Corp
4.67
-0.19
-3.91%
TSE:DR
Medical Facilities
16.01
3.87
31.92%
TSE:CRRX
CareRx
2.98
0.80
36.70%
TSE:NLH
Nova Leap Health
0.27
-0.01
-3.57%
TSE:DNTL
dentalcorp Holdings
8.15
-0.10
-1.21%

WELL Health Technologies Corp Corporate Events

Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
WELL Health Technologies Reports Strong Growth and Expanded Credit Facility
Positive
Jul 8, 2025

WELL Health Technologies Corp has announced an update on its Canadian Clinics business, reflecting improved financial guidance and an expanded credit facility. The company is ahead of internal expectations, forecasting over $450 million in revenue and over $60 million in Adjusted EBITDA for fiscal 2025. This growth is driven by both organic expansion and strategic acquisitions, including two new clinics in British Columbia, contributing significantly to the company’s revenue and operational scale. Additionally, WELL has extended its credit facility to $200 million, supporting further expansion and cost optimization initiatives aimed at enhancing efficiency and operational excellence across its Canadian clinics.

The most recent analyst rating on (TSE:WELL) stock is a Buy with a C$6.00 price target. To see the full list of analyst forecasts on WELL Health Technologies Corp stock, see the TSE:WELL Stock Forecast page.

Executive/Board ChangesShareholder Meetings
WELL Health Technologies Corp Announces Successful Election of Directors
Positive
Jul 4, 2025

WELL Health Technologies Corp announced the successful election of its directors during the annual general meeting held on June 30, 2025. The voting results showed strong support for the nominees, with a significant portion of the company’s common shares voted by proxy. This outcome reinforces WELL Health’s governance and strategic direction, potentially strengthening its position in the digital healthcare industry.

The most recent analyst rating on (TSE:WELL) stock is a Buy with a C$6.00 price target. To see the full list of analyst forecasts on WELL Health Technologies Corp stock, see the TSE:WELL Stock Forecast page.

Business Operations and Strategy
WELL Health Expands Primary Care Capacity with 45,000 New Patient Openings
Positive
Jun 24, 2025

WELL Health Technologies Corp. has announced a significant expansion in primary care capacity, adding over 45,000 new patient openings across its national clinic network in Ontario, Alberta, and Manitoba. This expansion is facilitated by investments in physician recruitment, including internationally trained doctors, and the implementation of advanced digital workflows and automation infrastructure. These efforts aim to address Canada’s access-to-care crisis by combining physician recruitment with digital health solutions to enhance care capacity and improve patient outcomes.

The most recent analyst rating on (TSE:WELL) stock is a Buy with a C$7.00 price target. To see the full list of analyst forecasts on WELL Health Technologies Corp stock, see the TSE:WELL Stock Forecast page.

Business Operations and Strategy
CRH Medical and WovenX Partner to Enhance GI Care Access
Positive
Jun 10, 2025

CRH Medical Corporation, a subsidiary of WELL Health Technologies Corp, has partnered with WovenX Health to enhance gastrointestinal (GI) care access and streamline delivery. This strategic collaboration combines CRH’s GI solutions with WovenX’s virtual platform to improve patient access, operational efficiency, and care standards, offering a consumer-centric model that addresses long-standing barriers in the GI community.

The most recent analyst rating on (TSE:WELL) stock is a Buy with a C$5.50 price target. To see the full list of analyst forecasts on WELL Health Technologies Corp stock, see the TSE:WELL Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
WELL Health Technologies Appoints Ric Leong as Chief Accounting Officer
Positive
Jun 5, 2025

WELL Health Technologies Corp. has appointed Ric Leong as its Chief Accounting Officer to lead the company’s accounting operations and financial planning as it continues to grow through acquisitions. Leong, with a strong background in financial leadership from his previous roles at Hootsuite and Avigilon, will focus on strengthening WELL’s financial reporting and integration processes, enhancing financial planning and analysis capabilities, and supporting the company’s expansive acquisition strategy.

The most recent analyst rating on (TSE:WELL) stock is a Buy with a C$5.50 price target. To see the full list of analyst forecasts on WELL Health Technologies Corp stock, see the TSE:WELL Stock Forecast page.

Business Operations and Strategy
WELL Health Subsidiaries Recognized in Canada Health Infoway’s 2025 Vendor Innovation Program
Positive
May 28, 2025

WELL Health Technologies Corp announced that its subsidiaries, Intrahealth, Pentavere, and OceanMD, have been selected for Canada Health Infoway’s 2025 Vendor Innovation Program. This recognition highlights the company’s leadership in the digital health sector, as their projects aim to enhance data quality, care coordination, and access to health information, thereby advancing interoperability in Canada’s healthcare system.

The most recent analyst rating on (TSE:WELL) stock is a Buy with a C$5.50 price target. To see the full list of analyst forecasts on WELL Health Technologies Corp stock, see the TSE:WELL Stock Forecast page.

Stock BuybackBusiness Operations and Strategy
WELL Health Initiates Automatic Share Purchase Plan to Boost Shareholder Value
Positive
May 20, 2025

WELL Health Technologies Corp. has entered into an automatic share purchase plan (ASPP) with a broker to facilitate the repurchase of its common shares under a previously announced normal course issuer bid (NCIB). This move allows the company to buy back up to 6,326,417 common shares, representing approximately 2.5% of its outstanding shares, during a 12-month period. The ASPP enables the broker to purchase shares even during periods when WELL is restricted from trading due to insider trading rules or internal blackout periods. This strategic initiative is expected to enhance shareholder value and reflects WELL’s confidence in its business prospects.

The most recent analyst rating on (TSE:WELL) stock is a Buy with a C$5.50 price target. To see the full list of analyst forecasts on WELL Health Technologies Corp stock, see the TSE:WELL Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
WELL Health Technologies Reports Record Revenue and Positive Outlook for 2025
Positive
Apr 15, 2025

WELL Health Technologies Corp announced its financial results for Q4 and the full year 2024, reporting a record annual revenue of $919.7 million, a 19% increase from the previous year. Despite challenges such as deferred revenue from Circle Medical and impacts from a cyberattack on Change Healthcare, the company achieved significant growth in patient visits and Canadian operations. WELL Health projects a positive outlook for 2025, with expected revenue between $1.40 billion to $1.45 billion and Adjusted EBITDA ranging from $190 million to $210 million, driven by strong organic growth and strategic initiatives.

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.Date of analysis: Jul 09, 2025