WELL Health Technologies Corp. Fundamental Analysis (TSX: WELL.TO)
WELL Health Technologies Corp. Fundamental Analysis (TSX: WELL.TO)
WELL Health Technologies Corp. (TSX: WELL.TO) shows weak financial fundamentals with a PE ratio of 171.15, profit margin of 0.25%, and ROE of 0.44%. The company generates $1.5B in annual revenue with strong year-over-year growth of 52.25%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 35.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze WELL.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakWELL.TO struggles to generate sufficient returns from assets.
Valuation Score
ModerateWELL.TO shows balanced valuation metrics.
Growth Score
ModerateWELL.TO shows steady but slowing expansion.
Financial Health Score
WeakWELL.TO carries high financial risk with limited liquidity.
Profitability Score
ModerateWELL.TO maintains healthy but balanced margins.
Key Financial Metrics
Is WELL.TO Expensive or Cheap?
P/E Ratio
WELL.TO trades at 171.15 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, WELL.TO's PEG of 0.54 indicates potential undervaluation.
Price to Book
The market values WELL Health Technologies Corp. at 1.34 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.95 times EBITDA. This is generally considered low.
How Well Does WELL.TO Make Money?
Net Profit Margin
For every $100 in sales, WELL Health Technologies Corp. keeps $0.25 as profit after all expenses.
Operating Margin
Core operations generate 6.91 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.44 in profit for every $100 of shareholder equity.
ROA
WELL Health Technologies Corp. generates $0.16 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
WELL Health Technologies Corp. generates limited operating cash flow of $124.26M, signaling weaker underlying cash strength.
Free Cash Flow
WELL Health Technologies Corp. produces free cash flow of $85.24M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.33 in free cash annually.
FCF Yield
WELL.TO converts 7.70% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
171.15
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.54
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.34
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.73
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.000
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.80
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.004
vs 25 benchmark
ROA
Return on assets percentage
0.002
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How WELL.TO Stacks Against Its Sector Peers
| Metric | WELL.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 171.15 | 32.14 | Worse (Expensive) |
| ROE | 0.44% | 550.00% | Weak |
| Net Margin | 0.25% | 30133.00% | Weak |
| Debt/Equity | 1.00 | 0.56 | Weak (High Leverage) |
| Current Ratio | 0.80 | 5.70 | Weak Liquidity |
| ROA | 0.16% | 3.00% | Weak |
WELL.TO outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews WELL Health Technologies Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
122.99%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-53.10%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
272.13%
Industry Style: Defensive, Growth, Innovation
High Growth