Investing in beaten-down growth stocks allows you to gain exposure to quality companies trading at a cheap multiple. In this article, I have identified one top TSX stock that is down 40% from its 52-week high, enabling Canadian investors to buy the dip.
Valued at a market cap of $384 million, Healwell AI (TSX:AIDX) is a healthcare-focused artificial intelligence company. It develops clinical decision support systems and AI-driven healthcare analytics. Operating across Canada, New Zealand, Australia, and the UK, Healwell provides chronic disease screening, electronic health records, clinical research services, and telehealth platforms to pharmaceutical firms, healthcare providers, and hospitals through three business segments.
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Is Healwell AI stock a good buy right now?
In Q1 2025, Healwell AI reported revenue of $14.1 million, an increase of 208% year-over-year. In addition to stellar top-line growth, the AI stock secured financing for the acquisition of Orion Health, which closed this April.
Healwell’s AI and Data Science business grew 224% year over year to $2.3 million in Q1. Its two primary AI subsidiaries, Pentavere Research and Khure Health, continued to expand their client base with a combined total of 32 signed master service agreements (MSAs) by quarter-end, up from 16 MSAs at the end of Q1 2024.
Moreover, Healwell identified approximately 50,800 high-risk patients by the end of the March quarter, which indicates progress in early disease detection.
The Orion Health acquisition should transform Healwell into a truly global company with over 70 key customers across 11 countries. Orion Health brings robust healthcare data infrastructure, strong operating margins, and solid free cash flow conversion, adding approximately $100 million in annual top-line revenue starting in Q2 2025.
The acquisition positions Healwell to integrate advanced AI technologies with Orion’s powerful healthcare data platforms, creating a unified global platform for enhanced patient outcomes.
Healthcare software revenue reached $5.7 million in Q1, a significant increase from $2 million in the prior year, driven by acquisitions of Verosource and other strategic additions. Clinical research and patient services generated $6.1 million, up 233% year-over-year, primarily attributed to the BioPharma acquisition.
Healwell implemented strategic leadership changes to support its next growth phase, with James Lee appointed CEO effective July 1, while founder Dr. Alexander Dobranowski transitions to President. The company also welcomed Sacha Gera as Chief Operating Officer and Brad Porter as Chief Commercial Officer, strengthening the executive team’s capabilities for global expansion.
Is the AI stock undervalued?
With the Orion Health integration and cost optimization efforts delivering $3 million in annualized savings, management expects Healwell to achieve adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) positive results for the full year 2025, marking an inflection point in the company’s profitability trajectory.
In August 2025, Healwell AI trades almost 70% below all-time highs, making it attractive to value investors. Analysts tracking the small-cap TSX stock expect its sales to increase from $39 million in 2024 to $369 million in 2029.
Moreover, Healwell AI is forecast to end 2028 with free cash flow of $28 million, compared to an outflow of $11 million in 2025. If the AI stock is priced at a reasonable multiple of 20 times forward FCF, it could gain over 45% over the next 30 months. Analysts remain bullish on Healwell stock and expect it to more than triple, given consensus price targets.
