A growth stock is a stock in a company that is expected to grow at a faster rate than the market. These stocks typically trade at what looks like expensive valuations, and they are typically volatile and do not pay dividends.
In this article, I’ll review a growth stock that continues to grow rapidly, while driving cash flows and earnings higher.
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What is this growth stock all about?
Well Health Technologies Corp. (TSX:WELL) is an omnichannel digital healthcare company, with a network that includes primary, specialized, and diagnostic healthcare services and facilities.
In the five years ended 2024, Well Health Technologies has grown at a rapid pace. Revenue increased more than 1,700% to $919 million. And adjusted net income increased to $32 million from a loss of almost $4 million. Finally, earnings per share (EPS) increased to $0.13, up from net losses in 2020.
In the last year, Well Health’s stock price has declined more than 20%. Yet, the company continued to grow rapidly in the first nine months of 2025. During this time period, revenue increased 48% to just over $1 billion, and adjusted net income increased almost 200% to $75 million.
Well Health – Driving cash flows
Today, the company’s strategy is to simplify and focus. This means divesting of its US assets, and focusing on the Canadian business. To this end, Well Health will complete a strategic alternatives process for its US care delivery business in 2026.
This will simplify the business and free up capital to be invested in the higher-growth Canadian businesses. The cash flows received from this process will complement the cash flows that Well Health is generating on a quarterly basis.
In the last three quarters of 2025, Well Health reported positive operating cash flow excluding changes in working capital of $110 million. In the third quarter, Well Health’s free cash flow came in at approximately $39 million. This is not a given with companies that are in the rapid growth phase. We can expect cash flows to continue to ramp up as Well Health continues to drive growth and increase its focus on the Canadian business.
Valuation
A growth stock is usually not cheap based on current earnings numbers. But based on adjusted earnings expectations for 2025, Well Health’s valuation actually looks quite attractive. Trading at 10 times adjusted earnings, Well Health’s stock price on the TSX is clearly not giving the company credit for its successful execution and financials.
This lack of recognition by investors is understandable in a sense, as there’s uncertainty related to Well Health’s efforts to monetize its US businesses. The company could get less than it’s expecting, and nothing is certain until a deal is finalized. But this is the opportunity. If Well Health continues along its rapid growth trajectory, the company will continue to thrive well into the future.
The bottom line
Well Health stock on the TSX is a growth stock to consider adding as it’s set to gain momentum in 2026 and beyond. It’s a big year – if Well Health can finalize its strategic divestitures in 2026, the risk premium on the stock will decline significantly, thus driving Well Health’s stock price higher.
