eHealth, Inc. (NASDAQ: EHTH)

Sector: Financial Services Industry: Insurance Brokers CIK: 0001333493
Market Cap 30.28 Mn
P/B 0.06
P/E 22.41
P/S 0.06
ROIC (Qtr) 6.22
Div Yield % 0.00
Rev 1y % (Qtr) -7.77
Total Debt (Qtr) 92.73 Mn
Debt/Equity (Qtr) 0.18

About

eHealth, Inc., also known as EHTH, is a prominent player in the health insurance industry, specifically in the private health insurance marketplace. The company's primary function is to provide consumer engagement, education, and health insurance enrollment solutions. It operates in two segments: Medicare and Employer and Individual (E&I). eHealth's business activities revolve around offering health insurance solutions, primarily through its digital platform. The company's operations span across the United States, serving a diverse range of customers....

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 66.18M provide 8.52x coverage of short-term debt 7.77M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 1.05B provides 11.30x coverage of total debt 92.73M, indicating robust asset backing and low credit risk.
  • Robust tangible asset base of 1.05B provides 4.16x coverage of working capital 251.63M, indicating strong operational backing.
  • Tangible assets of 1.05B provide robust 28.12x coverage of other current liabilities 37.25M, indicating strong asset backing.
  • Cash reserves of 66.18M provide robust 1.29x coverage of current liabilities 51.24M, indicating strong short-term solvency.

Bear case

  • Operating cash flow of (17.06M) barely covers its investment activities of 27.04M, with a coverage ratio of -0.63, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 27.04M provide weak support for R&D spending of 50.67M, which is 0.53x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (17.06M) shows concerning coverage of stock compensation expenses of 16.34M, with a -1.04 ratio indicating potential earnings quality issues.
  • Free cash flow of (33.27M) provides weak coverage of capital expenditures of 16.21M, with a -2.05 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (17.06M) barely covers operating expenses of 166.70M with a -0.10 ratio, suggesting thin operational efficiency margins and limited flexibility.

Segments Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Insurance Brokers
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MMC Marsh & Mclennan Companies, Inc. 92.62 Bn 29.47 4.67 21.43 Bn
2 AON Aon plc 74.51 Bn 27.41 4.38 17.44 Bn
3 AJG Arthur J. Gallagher & Co. 55.76 Bn 51.09 5.25 13.69 Bn
4 BRO Brown & Brown, Inc. 22.82 Bn 108.30 13.93 7.97 Bn
5 WTW Willis Towers Watson Plc 22.12 Bn 46.77 5.80 5.91 Bn
6 ERIE Erie Indemnity Co 13.10 Bn 45.46 4.72 0.00 Bn
7 CRVL Corvel Corp 3.53 Bn 33.49 3.78 0.02 Bn
8 ARX Accelerant Holdings 2.62 Bn 96.44 4.35 0.12 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.05 0.83
EV to Cash from Ops. EV/CFO -3.23 26.54
EV to Debt EV to Debt 0.59 10.83
EV to EBIT EV/EBIT 0.96 15.57
EV to EBITDA EV/EBITDA 0.82 12.32
EV to Free Cash Flow [EV/FCF] EV/FCF -1.65 38.93
EV to Market Cap EV to Market Cap 1.82 -1,866.90
EV to Revenue EV/Rev 0.10 2.59
Price to Book Value [P/B] P/B 0.06 3.17
Price to Earnings [P/E] P/E 22.41 24.79
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.03 0.83
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 31.35
Dividend per Basic Share Div per Share (Qtr) 0.00 1.08
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 18.16
Interest Coverage Int. cover (Qtr) 5.71 -4.53
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -40.69 423.33
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -1.40 -3.76
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -1.10
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 365.55 -9.09
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 641.62 -5.72
EBIT Growth (1y) % EBIT 1y % (Qtr) 368.43 8.13
EBT Growth (1y) % EBT 1y % (Qtr) 244.43 -4.46
EPS Growth (1y) % EPS 1y % (Qtr) 106.51 -68.33
FCF Growth (1y) % FCF 1y % (Qtr) 6.58 -67.66
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 16.85 52.95
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.52 0.62
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.16
Cash Ratio Cash Ratio (Qtr) 1.29 0.54
Current Ratio Curr Ratio (Qtr) 5.91 2.11
Debt to Equity Ratio Debt/Equity (Qtr) 0.18 0.93
Interest Cover Ratio Int Coverage (Qtr) 5.71 -4.53
Times Interest Earned Times Interest Earned (Qtr) 5.71 -4.53
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 13.20 6.16
EBIT Margin % EBIT Margin % (Qtr) 10.54 -108.04
EBT Margin % EBT Margin % (Qtr) 8.70 -14.94
Gross Margin % Gross Margin % (Qtr) 99.70 53.35
Net Profit Margin % Net Margin % (Qtr) 0.20 -17.46