You may have heard of WELL Health Technologies (TSX: WELL). It is currently the largest operator and owner of outpatient health clinics in Canada. As one of the top-performing growth stocks on the Canadian stock exchanges over the past five years, investors may rightly be interested in the potential direction of its stock price.
Let’s dive into this stock’s overall business and where it may be headed in the medium term from here.
What to know about WELL Health
WELL Health Technologies is a Canada-based digital health technology company with its headquarters situated in Vancouver. It is said to be Canada’s largest operator and owner of outpatient health clinics. The company provides solutions for electronic medical records (EMR), cybersecurity, revenue cycle and billing management, clinical operations and allied health services, and digital apps.
The segments can be categorized into three divisions: omnichannel patient services (primary), omnichannel patient services (specialized), and virtual services. The omnichannel patient services (primary) cover allied health and clinical operations, and the omnichannel patient services (specialized) include two segments: MyHealth and CRH. The range of virtual services includes billing and revenue cycle management solutions, cyber security, digital apps, and EMR.
Over the past five years, the company has recorded 60% revenue growth annually, while its share price has increased at an impressive rate on an annualized basis.
Strong revenue growth forecasted ahead
WELL Health has been performing well in terms of growth due to its diversified streams of revenue. Achieving record revenues in 19 quarters consecutively attributes this success to the sustained growth in omnichannel patient visits.
Additionally, the company aims to exceed its annual revenue of over $900 million by 2024 through organic expansion. Notably, WELL Health is strategically concentrating on profitable growth initiatives and value-adding acquisitions, further accelerating its upward trajectory.
At an enterprise value/sales ratio of 1.5 times, which is well below its historical average, the stock is significantly undervalued based on its revenue. This makes it a potentially attractive investment at its current price. Building on organic sales and strategic acquisitions, WELL Health is primed for healthy cash flow and market expansion. The company’s commitment to artificial intelligence development further deepens its product line-up, setting the stage for long-term growth.
Bottom line
To sum up, WELL Health is one of the best-performing digital healthcare stocks in Canada. With the company aiming to surpass the $900 million mark in terms of its annual turnover, there’s plenty of upside ahead.
Accordingly, for growth investors looking for a top pick, WELL stock is worth a look. Right now, this is a company I’ve got on my watch list. If we get any sort of major drawdowns, I will take a more serious look.
