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Digital healthcare provider WELL Health Technologies Corp. (TSX:WELL) is acquiring Ottawa-based healthcare firm ExecHealth for approximately C$ 13 million. The company’s footprint across Canada through its clinics purchases plan.
WELL stock could enter the bullish zone on the back of its rising revenue from Software-as-a-Services (SaaS) products. Also, it expects to add C$ 3 million in annual revenue from its acquisition of ExecHealth.
Let us have a look at this tech-backed healthcare company’s stock performance:
WELL Health Technologies Corp. (TSX:WELL)
This electronic medical service provider has witnessed 50 per cent growth in the number of patients’ availing telehealth amid the COVID pandemic. Telehealth care services demand might increase across Ontario region due to the fresh stay-home order.
In the past one year, it has swelled over 377 per cent, led by the health-related SaaS services. However, the stock was going through a correction in the first quarter of 2021 and dropped by nearly 6 per cent year-to-date (YTD).
It is up 390 per cent from its 52-week low of C$ 1.54 per share (tumbled on April 8, 2020), as per Refinitiv data.
The stock has started rebounding with a 5 per cent surge month-to-date (MTD). The digital healthcare stock has surpassed the S&P TSX 300 Composite Index, which has dropped by -5.04 per cent relatively.
At the last close price, it was up 13.65 per cent from the 200-day simple moving average, which indicates a long-term bullish movement.
On March 18, WELL registered record revenues of C$ 17.2 million in the fourth quarter of 2020, an increase of 75 per cent year-over-year (YoY). This surge came on the back of its SaaS revenues, which zoomed by 400 per cent YoY to $5.8 million in Q4 2020, compared with SaaS revenue of C$ 1.2 in Q4 2019.
WELL Health's One-Year Stock Performance Chart. (Source: Refinitiv)
The telehealth firm generated an adjusted gross profit of C$ 21.2 million in 2020, a record surge of 93 per cent YoY against an adjusted gross profit of C$ 11.0 million in 2019.
WELL Health’s Outlook For 2021
It expects to gain organic growth through its digital and non-digital clinics. It is also looking to boost its capital allocation and acquisition strategy and generate positive EBITDA through 2021. It anticipates a growing market share in the Canadian online health-related services and digital care programs, including clinical e-billing and cybersecurity.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.
