Kalkine Media explores 5 TSX healthcare stocks to watch this quarter

Highlights

• In Q3 2022, WELL Health’s revenue was C$ 145.78 million.
• Bausch Health’s net income in Q3 2022 was C$ 403 million.
• In Q3 2022, Andlauer Healthcare’s EBITDA was C$ 44.07 million.

There is diversity in the healthcare stocks in Canada. However, in the recent past, Covid-19 affected the market, and it took a downturn. There were several fluctuations happening daily. Post-pandemic, things are getting better and resuming their normal state. However, it is crucial to back your stock selection with proper research and analysis. Market uncertainties must be eliminated while repositioning your portfolio.

Currently, the S&P/TSX Capped Health Care Index accounts for 0.44 per cent of the total Composite Index. The Canada healthcare sector reported a quarter-to-date (QTD) return of 11.92 per cent.

If you are planning to invest in the sector, assess all the prevailing factors. Along with this, look for growth aspects that the sector may offer in the long run. Keep your portfolio diversified and track your stocks on a regular basis.

Let us explore five dividend stocks and assess their financial performance in recent quarters:

1. WELL Health Technologies Corp. (TSX:WELL)

WELL Health Technologies Corp. operates Primary Hclinics that delivers health-care-related services. There are several segments operated by the company including EMR (Electronic medical record), Cybersecurity, MyHealth, Billing and revenue cycle management solutions, etc.

In Q3 2022, WELL Health’s revenue soared to C$ 145.8 million from C$ 99.3 million in Q3 2021. The adjusted gross profit grew to C$ 78.2 million from C$ 50 million for the same comparative period. The adjusted EBITDA rose to C$ 27.5 million from C$ 22.3 million. The net income also witnessed an increase and was reported at C$ 611 thousand.

On October 11, 2022, WELL Health entered into an agreement to acquire Clinical Assets, EMR, and Billing assets from CloudMD.

2. Bausch Health Companies Inc. (TSX:BHC)

Bausch Health Companies Inc. deals in devices in the field of pharmaceuticals, consumer health, and medical. The company was formerly known as Valeant Pharmaceuticals and focuses on branded products for the ophthalmology, dermatology, and gastrointestinal markets. The revenue structure of the company includes- Bausch+Lomb (45 per cent), international pharma (14 per cent), Salix Pharmaceuticals (24 per cent), diversified products (10 per cent) and ortho dermatology (7 per cent).

In Q3 2022, the net income of the company rose to C$ 403 million from C$ 191 million in Q3 2021. The revenue of the company declined to C$ 2,046 million from C$ 2,111 million for the same period. The EBITDA grew to C$ 1,156 million from C$ 947 million. The EPS of the company is C$ 1.03 with a P/E ratio of 9.6.

The total market capitalization of WELL, BHC, SIA, AND, and TLRY:

3. Sienna Senior Living Inc. (TSX:SIA)

Sienna Senior Living Inc. is a Canada-based into- licensed long-term care operator, seniors’ housing owner, and a full continuum care provider.

In Q3 2022, the total revenue of the company was C$ 189.2 million from C$ 170.42 million in Q3 2021. The net operating income was reported at C$ 35.02. The company distributes a monthly dividend of C$ 0.078 per share per share. The dividend yield was reported at 7.647 per cent. The five-year dividend growth was posted at 0.92 per cent with an EPS of C$ 0.38.

4. Andlauer Healthcare Group Inc. (TSX:AND)

Andlauer Healthcare Group Inc. is into investment holding and operates under two segments- Healthcare Logistics and Specialized Transportation. The latter contributes to the maximum revenue of the company. It caters to the healthcare customers by providing specialized temperature-controlled services.

In Q3 2022, the total revenue of the company rose to C$ 164.89 million from C$ 104.19 million in Q3 2021. The net income grew to C$ 18.99 million from C$ 12.18 million for the same comparative period. The operating expenses also soared to C$ 137.03 million from C$ 87.4 million. The EBITDA increased to C$ 44.1 million from C$ 28 million.

The company pays a dividend of C$ 0.07 per share every quarter and reported a dividend yield of 0.555 per cent.

On November 11, 2022, the stock price of the company was C$ 50.45.

5. Tilray Brands Inc. (TSX:TLRY)

Tilray Brands Inc. is engaged in selling and cultivating recreational and medical cannabis.

In Q1 for the fiscal year 2023, the total assets of the company increased to US$ 5.65 billion from US$ 5.44 billion in the year-ago quarter.

As of August 31, 2022, the cash and cash equivalents rose to US$ 490.64 million from US$ 415.90 million on May 31, 2022.

Bottom Line

The healthcare sector has always been a necessity in every economy. However, investing must be done with effective research and analysis. Ensure to work in the long-term to protect your portfolio from fluctuations and changing trends. The pandemic is still prevalent and not yet over completely.  

In the healthcare sector, along with basic financials, look for the products growth, the emergence of new trends etc. These aspects may determine the value of the company in absolute terms.

To safeguard your portfolio, it is crucial to be thorough with the market performance at regular intervals. The market may be volatile or strong, stay aligned with your investment goals and make sure to pick suitable stocks. Having a long-term approach with diversification may prove to be sustainable.

Please note, the above content constitutes a very preliminary observation based on the industry and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.