Teladoc Health, Inc. (NYSE: TDOC)

Sector: Healthcare Industry: Health Information Services CIK: 0001477449
Market Cap 1.24 Bn
P/B 0.89
P/E -5.55
P/S 0.49
ROIC (Qtr) -11.14
Div Yield % 0.00
Rev 1y % (Qtr) -2.20
Total Debt (Qtr) 1.03 Bn
Debt/Equity (Qtr) 0.74

About

Teladoc Health, Inc. (TDOC), a prominent player in the healthcare industry, is transforming the way healthcare services are delivered through its cutting-edge virtual care offerings. The company's mission is to empower everyone, everywhere, to live their healthiest lives by providing accessible, convenient, and high-quality healthcare. Teladoc Health operates primarily in the virtual medical services sector, providing a wide range of offerings such as primary care, mental health, and chronic condition management. Its services are available in numerous...

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Price action

Investment thesis

Bull case

  • Operating cash flow of 292.52M provides exceptional 13.54x coverage of interest expenses 21.61M, showing strong debt service capability.
  • Tangible assets of 1.26B provide exceptional 15.47x coverage of deferred revenue 81.35M, showing strong service capability backing.
  • Operating cash flow of 292.52M provides strong 3.60x coverage of deferred revenue 81.35M, indicating service delivery capability.
  • Operating cash flow of 292.52M provides solid 0.72x coverage of current liabilities 405.09M, showing strong operational health.
  • Cash reserves of 726.25M provide robust 1.79x coverage of current liabilities 405.09M, indicating strong short-term solvency.

Bear case

  • Operating cash flow of 292.52M barely covers its investment activities of (261.33M), with a coverage ratio of -1.12, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (261.33M) provide weak support for R&D spending of 283.07M, which is -0.92x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 726.25M provide limited coverage of acquisition spending of (111.47M), which is -6.52x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • High receivables of 210.76M relative to inventory of 39.90M (5.28 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • The company's operating cash flow of 292.52M shows concerning coverage of stock compensation expenses of 91.97M, with a 3.18 ratio indicating potential earnings quality issues.

Product and Service Breakdown of Revenue (2024)

Geographical Breakdown of Revenue (2024)

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 0.55 2.77
EV to Cash from Ops. EV/CFO 5.42 -10.86
EV to Debt EV to Debt 1.54 161.93
EV to EBIT EV/EBIT -6.94 -106.48
EV to EBITDA EV/EBITDA 16.92 4.22
EV to Free Cash Flow [EV/FCF] EV/FCF 9.34 7.46
EV to Market Cap EV to Market Cap 1.28 -14.93
EV to Revenue EV/Rev 0.63 1.76
Price to Book Value [P/B] P/B 0.89 10.57
Price to Earnings [P/E] P/E -5.55 147.14
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) -10.57 -584.72
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 6.21 -24.09
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -41.61 172.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -1.05
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 78.70 -17.73
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 115.22 39.85
EBIT Growth (1y) % EBIT 1y % (Qtr) 75.91 -38.83
EBT Growth (1y) % EBT 1y % (Qtr) 74.24 -4.52
EPS Growth (1y) % EPS 1y % (Qtr) 78.16 2.60
FCF Growth (1y) % FCF 1y % (Qtr) -17.98 -48.57
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -3.77 5.49
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.88 0.66
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 1.79 1.87
Current Ratio Curr Ratio (Qtr) 2.70 3.27
Debt to Equity Ratio Debt/Equity (Qtr) 0.74 -0.43
Interest Cover Ratio Int Coverage (Qtr) -10.57 -584.72
Times Interest Earned Times Interest Earned (Qtr) -10.57 -584.72
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 5.60 -435.80
EBIT Margin % EBIT Margin % (Qtr) -9.04 -464.70
EBT Margin % EBT Margin % (Qtr) -9.89 -461.74
Gross Margin % Gross Margin % (Qtr) 69.80 44.03
Net Profit Margin % Net Margin % (Qtr) -8.80 -468.01