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WELL Health Technologies Corp T.WELL

Alternate Symbol(s):  WHTCF | T.WELL.DB

WELL Health Technologies Corp. is a Canada-based practitioner-focused digital healthcare company. Its healthcare and digital platform includes extensive front and back-office management software applications that help physicians run and secure their practices. Its business units include Canadian Patient Services, WELL Health USA Patient and Provider Services, and SaaS and Technology Services. Its solutions enable more than 38,000 healthcare providers between the United States and Canada and power owned and operated healthcare ecosystem in Canada with over 200 clinics supporting primary care, specialized care, and diagnostic services. In the United States its solutions are focused on specialized markets such as the gastrointestinal market, women's health, primary care, and mental health. WELL Health USA Patient and Provider Services consists of four assets: CRH Medical, Provider Staffing, Circle Medical and Wisp. It provides cybersecurity protection and patient data privacy solutions.


TSX:WELL - Post by User

Post by ace1mccoyon Apr 26, 2021 8:46am
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Post# 33065456

Article

Article
 
 
 
Bigger than Telehealth? What This Opportunity Could Mean for the Healthcare Industry

The future of healthcare is so much more than just telehealth. It's a complete evolution in the healthcare ecosystem.
We're talking about reimagining how healthcare providers engage and support their patients. And how patients interact with their providers, access their healthcare records, and engage in everyday healthcare related activities like filling prescriptions.
This is where WELL Health Technologies Corp. (TSX:WELL) (OTC:WLYYF) comes in.
WELL is an omni-channel digital health company whose overarching objective is to empower doctors to provide the best and most advanced care possible while leveraging the latest trends in digital health and making smart acquisitions to expand its portfolio of clinical and digital assets.
We believe that WELL is a unique opportunity that has been overlooked by the market. The company has taken a page out of Warren Buffett’s playbook, to build WELL into a well-oiled capital allocation machine.
Well, well, well… Let’s take a closer look at this unique company.
 
8 Reasons WELL Health Technologies is the One to Watch
  1. Strong Revenue and Profit Profile: On a proforma basis, based on analyst expectations, WELL is now approaching C$300M in revenues with better than 25% EBITDA margins and 18% free cashflow margins (before tax and leverage costs).  
  2. Rapid Growth and Acquisition Strategy: Over 32 acquisitions so far and more than 10 signed LOIs.
  3. Comparatively Undervalued vs. US Comps: WELL is presently trading at an EV to sales multiple of 5X based on its current revenue run-rate (not including the current signed LOIs). Market comps trading in the US trade >11X 
  4. Telehealth leader: Owns and operates numerous US and Canadian telehealth platforms and is one of the largest providers of telehealth in Canada.
  5. Proven Management: WELL’s CEO, Hamed Shahbazi, has had previous experience leading TIO Networks, which sold to PayPal for $304M.
  6. Backed by high profiled strategic investors: Supported by business magnate and multi-billionaire Li Ka-shing, who is among the 50th richest people in the world, along with institutional investors like Manulife (~$1T asset manager), CI Investments, Fiera Capital, Sentry Investments, Vestcor Pension, Iconiq Capital, Desjardins Asset Management, and PenderFund Capital Management.
  7. Well-Funded/Strong Balance Sheet: Currently with $65 million+ in cash available for future acquisitions, and recently closed C$302.5 million equity offering to support its acquisition of CRH Medical.
  8. Majority US Revenue and Expansion paving the way for a US listing: Now has over 50% US-sourced revenue, based on WELL’s successful acquisition of CRH Medical and its 58% ownership of Circle Medical  
 
Moving Beyond Telehealth
WELL Health Technologies Corp. (TSX:WELL) (OTC:WLYYF) is a healthcare-focused capital allocator with interests in primary care, telehealth, Electronic Medical Records (EMR), practice management, billing, digital health applications, and cybersecurity solutions. The company was founded by Hamed Shahbazi, the previous CEO of TIO Networks, which sold to PayPal for $304 million in 2017.
WELL owns and operates 27 primary healthcare clinics in both Canada and the US, operates a multi-national EMR business serving thousands of healthcare clinics, and operates a telehealth service in both Canada and the United States.
In addition to this, WELL (TSX:WELL) (OTC:WLYYF) has a specialized dermatology clinic and is a majority stakeholder in an integrative care clinic called Spring Medical. WELL also operates five clinics in the province of Quebec, which were acquired through the ExcelleMD acquisition.
At the moment, the company is fully funded after completing a C$302.5 million equity raise led by strategic investor, Hong Kong billionaire Sir Li-Ka Shing, who, along with his partner, invested a combined C$100M at a 25% premium.
 
Creating a Digital Health Powerhouse
WELL Health Technologies Corp. (TSX:WELL) (OTC:WLYYF) has been growing at an exceptional pace and recently reported record quarterly revenues of $17.2 million in Q4-2020, reflecting a 75% YoY increase. This growth was attributed to its Software and Services revenues, which increased by 400% in Q4-2020 to $5.8 million, as compared to Software and Services revenue of $1.2 million in Q4-2019.  
Going forward, this current pace of revenue growth has the potential to continue, in large part thanks to the fact that in 2021 alone, WELL has already acquired multiple revenue-generating businesses. For instance, it acquired Adracare, which has roughly $2 million in annual revenue, and Intrahealth ($9M revenue), and is in the process of acquiring ExecHealth ($3M revenue).
Below is a sample of WELL’s acquisitions in 2020 and 2021 so far:
 
 
 
In addition to the acquisitions listed above, WELL also acquired several smaller EMR vendors, including OpenHealth Software Solutions, ClearMedica, and MedBASE’s OSCAR EMR business. WELL has also been active in making equity investments in digital health opportunities such as Pillway, Phelix.ai, and Twig Fertility Clinic.
But WELL’s (TSX:WELL) (OTC:WLYYF) biggest milestone yet this year is the acquisition of CRH Medical Corp, which has a >C$175M run rate.
CRH Medical Corp is a full-service gastroenterology (GI) anesthesia company that serves 72 ambulatory surgical centers in 15 states. CRH has grown through an M&A strategy, with about 33 transactions completed to date and an active pipeline of over 500 targets, creating “an opportunity for WELL to cross-sell its services to modernize CRH’s gastroenterology (GI) practices across its footprint.”
WELL has completed the acquisition of CRH for C$472.6 million in an all-cash transaction at approximately 6.5x EBITDA, or 2.7x revenue, and now has a combined enterprise value of more than $1.5 billion, illustrating just how cheap the company’s shares are currently valued at.

 
 

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