American Well Corp (NYSE: AMWL)

Sector: Healthcare Industry: Health Information Services CIK: 0001393584
Market Cap 74.57 Mn
P/B 0.29
P/E -0.66
P/S 0.28
ROIC (Qtr) -46.48
Div Yield % 0.00
Rev 1y % (Qtr) -7.80
Total Debt (Qtr) 5.46 Mn
Debt/Equity (Qtr) 0.02

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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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 201.68M provide 54.83x coverage of short-term debt 3.68M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of (62.03M) provides exceptional 66.35x coverage of minority interest expenses (935000), showing strong core operations.
  • Strong tangible asset base of 284.87M provides 52.17x coverage of total debt 5.46M, indicating robust asset backing and low credit risk.
  • Tangible assets of 284.87M provide exceptional 8.89x coverage of deferred revenue 32.03M, showing strong service capability backing.
  • Operating cash flow of (62.03M) fully covers other non-current liabilities (28.24M) by 2.20x, showing strong long-term stability.

Bear case

  • Operating cash flow of (62.03M) barely covers its investment activities of 15.26M, with a coverage ratio of -4.07, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 15.26M provide weak support for R&D spending of 77.70M, which is 0.20x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (62.03M) provides insufficient coverage of deferred revenue obligations of 32.03M, which is -1.94x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (62.03M) shows concerning coverage of stock compensation expenses of 28.32M, with a -2.19 ratio indicating potential earnings quality issues.
  • High receivables of 55.58M relative to inventory of 1.82M (30.49 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.

Peer comparison

Companies in the Health Information Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TEM Tempus AI, Inc. 45.63 Bn -223.83 41.29 1.34 Bn
2 GEHC GE HealthCare Technologies Inc. 38.75 Bn 19.85 2.19 10.28 Bn
3 VEEV Veeva Systems Inc 37.30 Bn 43.36 12.11 0.09 Bn
4 DOCS Doximity, Inc. 7.81 Bn 30.87 12.57 0.01 Bn
5 BTSG BrightSpring Health Services, Inc. 7.70 Bn 59.42 0.62 2.70 Bn
6 HQY Healthequity, Inc. 7.32 Bn 38.14 5.67 1.03 Bn
7 WAY Waystar Holding Corp. 5.00 Bn 44.97 4.81 1.25 Bn
8 PRVA Privia Health Group, Inc. 2.79 Bn 153.67 1.37 0.01 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets -0.39 2.77
EV to Cash from Ops. EV/CFO 2.24 -10.86
EV to Debt EV to Debt -25.44 161.93
EV to EBIT EV/EBIT 1.25 -106.48
EV to EBITDA EV/EBITDA 1.56 4.22
EV to Free Cash Flow [EV/FCF] EV/FCF 2.16 7.46
EV to Market Cap EV to Market Cap -1.86 -14.93
EV to Revenue EV/Rev -0.52 1.76
Price to Book Value [P/B] P/B 0.29 10.57
Price to Earnings [P/E] P/E -0.66 147.14
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -8.65
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 5.00
Dividend per Basic Share Div per Share (Qtr) 0.00 0.04
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 4.57
Interest Coverage Int. cover (Qtr) 0.00 -584.72
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 82.83 -24.09
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -17.83 172.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -1.05
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 47.01 -17.73
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 55.10 39.85
EBIT Growth (1y) % EBIT 1y % (Qtr) 47.79 -38.83
EBT Growth (1y) % EBT 1y % (Qtr) 47.79 -4.52
EPS Growth (1y) % EPS 1y % (Qtr) 50.10 2.60
FCF Growth (1y) % FCF 1y % (Qtr) 61.99 -48.57
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 57.14 5.49
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.74 0.66
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 2.33 1.87
Current Ratio Curr Ratio (Qtr) 3.14 3.27
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) -29.10 -435.80
EBIT Margin % EBIT Margin % (Qtr) -41.82 -464.70
EBT Margin % EBT Margin % (Qtr) -41.82 -461.74
Gross Margin % Gross Margin % (Qtr) 52.40 44.03
Net Profit Margin % Net Margin % (Qtr) -42.80 -468.01