WELL Health (TSX:WELL) is a Vancouver-based company that operates as a practitioner-focused digital health company in Canada, the United States, and around the world. The company’s stock had an incredible run in the thick of the COVID-19 pandemic. However, it has since been brought down to earth. What does the future look like for WELL Health? Is it too late to buy the stock? Let’s jump in.
How has WELL Health stock performed this decade?
Shares of WELL Health have jumped 8.2% month over month as of close on Thursday, January 18, 2024. Meanwhile, the stock has climbed 27% year over year. WELL Health stock has shot up 902% over a five-year period at the time of this writing. There is no denying the explosive potential of this healthcare stock. But is WELL Health’s best days in the past?
Why investors should be excited about the telehealth space
The COVID-19 pandemic shook up the social, political, and economic fabric of Canadian society. Citizens fought to prevent the spread of infection in the early days of the pandemic. Because of this, policymakers urged all non-essential workers to work from home. Not even healthcare workers were spared. Indeed, many doctors and other healthcare professionals needed a way to treat their patients without meeting face to face and risking further spread. Fortunately, telehealth already existed.
Telehealth involves the use of digital information and communication technologies to access healthcare services remotely. Naturally, there are several options for those seeking telehealth in the modern world. Patients can speak to their healthcare provider over the phone or through a video chat. Indeed, the visual over a video chat could aid in making a remote diagnosis. Moreover, patients can send and receive messages through a secure messaging app, email, or a secure file exchange. Some healthcare providers also offer remote monitoring to their patients. This allows healthcare professionals to check up on you at home or at work.
Grand View Research estimated that the global telehealth market was worth US$101 million. That same report projected that this market would grow at a compound annual growth rate (CAGR) of 24%.
WELL Health earnings: A breakdown
Investors can expect to see this company’s fourth-quarter (Q4) and full-year fiscal 2023 earnings in the month of March if the previous year is any indication. In Q3 fiscal 2023, WELL Health achieved record quarterly revenues of $204 million. That was up 40.2% compared to Q3 fiscal 2022. Moreover, the company delivered organic growth of 16%. Patient services revenue was reported at $57.8 million, which was up 27% compared to patient services revenue of $45.5 million in the previous year.
WELL Health delivered adjusted gross profit growth of $94.2 million — up 20.5% compared to Q3 fiscal 2022. EBITDA stands for earnings before interest, taxes, depreciation, and amortization; the measure aims to give a clearer picture of a company’s profitability. This company posted adjusted EBITDA growth of 2.6% to $28.2 million.
The verdict
Shares of WELL Health are trading in favourable value territory compared to its industry peers at the time of this writing. Better yet, the company’s earnings are also on track to deliver very strong growth going forward.
