WELL Health Technologies (TSX:WELL) has grossly underperformed the broader markets in recent years. Valued at a market cap of $1.1 billion, the Canada-based health-tech stock is down 53% from all-time highs. In fact, it traded at all-time highs back in February 2021.
Today, Well Health continues to grow at a steady pace, while improving its profit margins, making it an undervalued stock to own in July 2026. Let’s dive deeper.
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The bull case for this TSX tech stock
WELL Health is Canada’s largest outpatient health care platform. It operates clinics across Canada and owns a technology platform that powers these clinics. WellStar is the software arm, HealWell is the data and artificial intelligence layer, and CyberWell handles data protection.
Chairman and CEO Hamed Shahbazi described the strategy plainly on the company’s most recent earnings call. The clinics deliver care, WellStar runs the digital workflows behind that care, and HealWell applies artificial intelligence at scale. Put together, it offers a combination no other Canadian health care company currently provides.
The network has grown to roughly 270 clinics, and the company says 75% of the population in provinces where it operates lives within 20 kilometres of a WELL clinic, with that figure at 70% nationally.
WELL is now delivering more than five million patient visits a year, more than double what the largest hospital system in the country handles.
In Q1 2026, WELL reported $368.3 million in revenue, an increase of 25% year over year. It reported an adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of $43.1 million, up 56%, while net income doubled to $15.5 million. Management reaffirmed full-year revenue midpoint guidance of $1.6 billion with adjusted EBITDA of $180 million.
The Canadian clinics business has grown revenue at a compound annual rate above 47% over the past four years, with adjusted EBITDA growing at more than 44% annually over the same period.
WELL Canada, which includes the clinics and WellStar, hit its $100 million adjusted EBITDA target more than three quarters ahead of schedule, and it did so with lower revenue than originally planned.
What next for the undervalued Canadian stock
There is also a structural shift occurring in Canadian health care that works in WELL’s favour. New federal legislation is pushing for interoperability between health systems and restricting the kind of data blocking that has historically protected legacy vendors.
At the same time, provinces are increasingly favouring Canadian-owned platforms for sensitive health data, driven by data sovereignty concerns and a push to support domestic technology companies.
Ontario’s Health Ministry announced plans in March 2026 for a province-wide electronic medical record initiative, backed by more than $3.4 billion in funding. WELL has already confirmed it intends to participate in that procurement process, and it is one of only a handful of companies with the scale to compete for it.
WELL currently represents about 1.5% of outpatient primary care delivered in Canada. Management’s long-term target is 10% within 8 to 10 years, which would put the company at roughly $7 billion in annual revenue.
Add in a growing acquisition pipeline, an expanded $400 million credit facility, and plans to spin out WellStar as a standalone public company once it reaches around $100 million in revenue, and you have several distinct paths for value to show up over the next few years.
Analysts tracking WELL stock forecast free cash flow to expand from $88.5 million in 2026 to $177.5 million in 2028. If the TSX tech stock is priced at 10 times forward FCF, it could deliver over 60% returns over the next 18 months.
I believe WELL Health is an undervalued Canadian stock and among the more compelling turnaround setups on the TSX.
