RE:RE:RE:RE:RE:lots of garbagebandit69 wrote: Goes back to my question I made in a different post a few weeks ago, what's their moat or competitive advantage?
80% of their revenues are from CRH and MyHealth. the telehealth biz will almost certainly be divested at some point, recall they only own roughly half of the Circle and WISP businesses.
CRH - they have deep relationships with GI practices given their history of producing and selling the O'Regan device. they are the only consolidator of GI anesthesia in the US that I am aware of and the JV business model is quite shrewd. it's not a moat, but they are the leader in the GI anesthesia consolidator space. good tailwinds from baby boomer doctors who are looking to monetize their practice and good tailwinds from aging population / increase in deep sedation colonoscopies.
MyHealth - the moat is licensing (very high barrier to entry) and scale. WELL is now the largest owner of outpatient medical clinics in Canada - not sure if you're aware of that.
both businesses operate in highly fragmented spaces where there is no dominant player. both businesses have a large amount of credit available to them to grow should they find target tuck-in acquisitions. both have solid track records of consolidating in their space and creating value. mix in WELL's HCIT/SaaS offerings and you've got a very solid business with stable and recurring revenues.
hate it all you want, but WELL is not the only company that uses EBITDA as their key metric. they are in a growth phase and incurring costs that won't be recurring forever. add back their non-cash Dep/Amort and the company is
profitable. I've shared the detailed reconciliation of Net Income to Adjusted EBITDA here a few times and I don't belive you've commented or shared your views as to why it's flawed. happy to have some good debate here.