American Well Corp (NYSE: AMWL)

Sector: Healthcare Industry: Health Information Services CIK: 0001393584
Market Cap 88.80 Mn
P/B 0.38
P/E -0.93
P/S 0.36
ROIC (Qtr) -41.04
Div Yield % 0.00
Rev 1y % (Qtr) -22.11
Total Debt (Qtr) 4.52 Mn
Debt/Equity (Qtr) 0.02
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About

American Well Corporation, also known as Amwell, is a leading enterprise platform and software company operating in the healthcare industry. The company's main business activities involve providing a comprehensive suite of digital care solutions to health systems, health plans, and innovators. These solutions enable healthcare providers to deliver digital care to their patients and members, improving access to healthcare services and addressing personnel shortages and access limitations. Amwell generates revenue primarily through its enterprise...

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Investment thesis

Bull case

  • Healthy cash reserves of 183.12M provide 50.42x coverage of short-term debt 3.63M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 257.71M provides 56.97x coverage of total debt 4.52M, indicating robust asset backing and low credit risk.
  • Tangible assets of 257.71M provide exceptional 10.99x coverage of deferred revenue 23.44M, showing strong service capability backing.
  • Operating cash flow of (65.95M) fully covers other non-current liabilities (21.55M) by 3.06x, showing strong long-term stability.
  • Cash position of 183.12M provides exceptional 249.83x coverage of minority interest expenses 733000, indicating strong liquidity.

Bear case

  • Operating cash flow of (65.95M) barely covers its investment activities of 17.10M, with a coverage ratio of -3.86, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 17.10M provide weak support for R&D spending of 72.86M, which is 0.23x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (65.95M) provides insufficient coverage of deferred revenue obligations of 23.44M, which is -2.81x, raising concerns about future service delivery capabilities.
  • High receivables of 49.69M relative to inventory of 1.19M (41.86 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Free cash flow of (65.97M) provides weak coverage of capital expenditures of 21000, with a -3141.62 ratio suggesting additional external financing needs for growth initiatives.

Peer comparison

Companies in the Health Information Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GEHC GE HealthCare Technologies Inc. 37.32 Bn 16.66 1.87 10.00 Bn
2 TEM Tempus AI, Inc. 35.72 Bn -175.20 32.32 1.34 Bn
3 VEEV Veeva Systems Inc 28.87 Bn 33.55 9.37 0.09 Bn
4 BTSG BrightSpring Health Services, Inc. 7.67 Bn 59.17 0.62 2.70 Bn
5 HQY Healthequity, Inc. 6.45 Bn 33.65 5.00 1.03 Bn
6 DOCS Doximity, Inc. 4.63 Bn 19.35 7.26 0.01 Bn
7 WAY Waystar Holding Corp. 4.33 Bn 38.59 3.93 1.49 Bn
8 PRVA Privia Health Group, Inc. 2.67 Bn 147.20 1.31 0.01 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets -0.33 1.94
EV to Cash from Ops. EV/CFO 1.63 -6.03
EV to Debt EV to Debt -23.75 145.43
EV to EBIT EV/EBIT 1.13 -101.02
EV to EBITDA EV/EBITDA 1.51 2.47
EV to Free Cash Flow [EV/FCF] EV/FCF 1.63 3.97
EV to Market Cap EV to Market Cap -1.21 -28.84
EV to Revenue EV/Rev -0.43 -0.03
Price to Book Value [P/B] P/B 0.38 7.66
Price to Earnings [P/E] P/E -0.93 98.34
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -8.72
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 5.01
Dividend per Basic Share Div per Share (Qtr) 0.00 0.04
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 4.56
Interest Coverage Int. cover (Qtr) 0.00 -584.72
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 99.86 -23.97
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -20.07 167.20
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -1.33
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 54.02 -19.20
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 61.36 40.04
EBIT Growth (1y) % EBIT 1y % (Qtr) 53.62 -39.33
EBT Growth (1y) % EBT 1y % (Qtr) 53.62 6.33
EPS Growth (1y) % EPS 1y % (Qtr) 57.06 8.83
FCF Growth (1y) % FCF 1y % (Qtr) 53.72 -6.20
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 34.27 4.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.77 0.66
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 2.50 1.81
Current Ratio Curr Ratio (Qtr) 3.37 3.20
Debt to Equity Ratio Debt/Equity (Qtr) 0.02 -0.43
Interest Cover Ratio Int Coverage (Qtr) 0.00 -584.72
Times Interest Earned Times Interest Earned (Qtr) 0.00 -584.72
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -24.60 -435.68
EBIT Margin % EBIT Margin % (Qtr) -38.21 -464.60
EBT Margin % EBT Margin % (Qtr) -38.21 -461.63
Gross Margin % Gross Margin % (Qtr) 53.30 44.04
Net Profit Margin % Net Margin % (Qtr) -38.40 -467.91