WELL Health Corp. (TSX:WELL): Best Growth Stock To Buy Now

Source:Africa Studio Shutterstock

Summary

• WELL Health Q4 revenues were Up 75 per cent on acquisitions, telehealth growth.
• Revenues for the year ended December 31, 2020, topped US$50.2 million, up 53 per cent.
• WELL Health starts major expansion in the US after several significant acquisitions.

Canada’s leading healthcare company WELL Health Technologies Corp. (TSX:WELL) on Thursday posted robust revenue growth for the fourth quarter and the year ended December 31, 2020.

The results reflected the positive contributions from its acquisitions of various assets as well as its major expansion in the US market during the period.

WELL Health’s revenues rose by 75 per cent to US$17.2 million in the fourth quarter, compared to the same period in the previous year, largely driven by increased sales through telehealth.

The company has said that its revenues from software and services jumped 400 per cent to US$5.8 million, compared to US$1.2 million in the corresponding period.

Its annual financial highlights have also been impressive. The total revenues for the year ended December 31, 2020, topped US$50.2 million, which was an increase of 53 per cent, boosted by revenues from acquisitions, and increased sales of software and telehealth products.

Its total annual revenues from software and services rose 393 per cent to US$12.3 million in 2020, compared to the previous fiscal year.

Pic Credit: Pixabay.

What WELL Health Has Been Doing?

WELL Health cloaked one million omnichannel patient visits in 2020. Omnichannel is a multichannel approach that offers healthcare providers an opportunity to serve seamless services to patients. It recorded 263,699 omnichannel patient visits in Q4, representing a 12 per cent jump from Q3.

Besides, it had completed a public offering of 11.9 million common shares at US$6.75 apiece on October 22, 2020, bringing in US$80.5 million in proceeds.

WELL Health executed seven transactions for majority stakes in companies or completed ownership in the fourth quarter of 2020.

It acquired a majority stake in care-provider Easy Allied Health Inc. Founded in 2020, Easy Allied has a network of health professionals who provide specialized services to patients.

WELL Health also acquired DoctorCare Inc., Insig Corporation, ExcelleMD Inc. and its affiliate VirtuelMED Inc., San Francisco-based Circle Medical Inc., which also provides omnichannel services, to boost its US expansion, and cybersecurity firm Source44 Consulting Incorporated, as well as a minority stake in online pharmacy Simpill Health Group Inc.

On February 8, 2021, WELL Health announced to acquire all outstanding shares of CRH Medical to help its expansion in the US. The deal amount is worth US$292.7 million based on the share value of US$4.00. CRH Medical provides services to 70 surgical centers in 13 US states. It had also executed several other acquisitions or entered collaborations.

The WELL Health stock was trading at C$8.07 per share at 10.47 am ET on Thursday. Its value rose 17 per cent in the past six months. The company has a market cap of around US1.3 billion.

The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.