American Well (AMWL) AI Stock Analysis

• Market Cap: $84.31M
• Dividend Yield: N/A
• Average Volume (3M): 89.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.22
• Revenue Growth: 5.83%
• EPS Growth: 61.94%
• Country: US
• Employees: 877
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -1.24
• Shares Outstanding: 14,504,796
• 10 Day Avg. Volume: 88,256
• 30 Day Avg. Volume: 89,473
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: -0.70
• Enterprise Value/Revenue: -0.22
• Enterprise Value/Gross Profit: -0.45
• Enterprise Value/Ebitda: 0.55
• 1Y Price Target: $9.83
• Price Target Upside: 75.22% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 49 Neutral
• Price Target: $5.50 ▼(-1.96% Downside)

American Well's overall stock score is primarily impacted by its financial performance, which shows significant challenges with declining revenues and persistent losses. Technical analysis indicates a bearish trend, further weighing down the score. Valuation metrics are unattractive due to negative earnings and no dividend yield. However, the earnings call provided some optimism with improved EBITDA and strategic wins, slightly offsetting the negative factors.

Positive Factors

Software Revenue Growth

The significant growth in software revenue indicates strong demand for Amwell's digital health solutions, enhancing its market position and potential for future profitability.

Improved EBITDA

The improvement in EBITDA reflects better operational efficiency and cost management, which strengthens Amwell's financial health and long-term sustainability.

Strategic Client Wins

Securing strategic clients like Florida Blue enhances Amwell's competitive edge and expands its reach, supporting long-term revenue growth and market penetration.

Negative Factors

Declining Visit Metrics

The decline in visit metrics suggests challenges in user engagement and retention, potentially impacting revenue and market share if not addressed.

Negative Cash Flow

Ongoing negative cash flow indicates operational inefficiencies and may hinder Amwell's ability to invest in growth opportunities, affecting long-term viability.

Revised Revenue Guidance

The downward revision in revenue guidance reflects potential challenges in achieving growth targets, which could impact investor confidence and strategic planning.

American Well Business Overview & Revenue Model

Company Description

American Well (AMWL) is a telehealth technology company that provides a platform connecting patients with healthcare professionals through video calls and other digital communication methods. The company operates primarily in the healthcare sector, offering services such as virtual visits, remote patient monitoring, and integrated telehealth solutions for health systems and insurers. American Well aims to enhance access to healthcare while improving the patient experience through innovative technology and partnerships.

How the Company Makes Money

American Well generates revenue through several key streams, primarily by charging health systems, insurers, and employers for access to its telehealth platform. The company typically operates on a subscription model, where clients pay for the use of the platform based on the number of virtual visits or a fixed monthly fee. Additionally, American Well may earn revenue from transaction fees for each telehealth consultation conducted via its platform. Significant partnerships with major health insurers and healthcare systems also contribute to its earnings by expanding its user base and increasing service adoption. The company may also explore other revenue opportunities through data analytics and value-added services, providing insights to healthcare providers based on telehealth usage patterns.

American Well Financial Statement Overview

Summary

American Well faces significant financial challenges, with declining revenues and persistent losses impacting its income statement. The balance sheet is supported by a strong equity base, although asset values are declining. Cash flows remain negative, indicating difficulty in turning operations into positive cash generation. Continued focus on improving operational efficiency and revenue growth is critical for financial stability.

Income Statement

American Well's income statement indicates declining revenues and persistent losses. The TTM shows a decrease in revenue with a total of $194.8 million compared to $254.4 million in the previous annual report. The company continues to operate at a loss with a negative net profit margin of -79.4% for TTM, reflecting significant challenges in achieving profitability.

Balance Sheet

The balance sheet shows a relatively strong equity position, with an equity ratio of 70.1% in the TTM, suggesting a low reliance on debt. However, the company has seen a reduction in total assets and equity over time, which could indicate challenges in asset management and growth.

Cash Flow

The cash flow statement highlights negative free cash flow of -$105 million in the TTM, indicating ongoing operational cash challenges. The operating cash flow to net income ratio is negative, underscoring inefficiencies in cash generation relative to reported losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	269.78M	254.36M	259.05M	277.19M	252.79M	245.26M
Gross Profit	132.10M	98.95M	94.76M	116.77M	104.31M	88.47M
EBITDA	-108.37M	-184.56M	-225.99M	-249.69M	-162.20M	-216.93M
Net Income	-124.52M	-208.14M	-675.16M	-269.79M	-173.65M	-226.44M
Balance Sheet
Total Assets	388.66M	435.97M	589.71M	1.22B	1.45B	1.38B
Cash, Cash Equivalents and Short-Term Investments	219.07M	228.32M	372.04M	538.55M	746.42M	1.04B
Total Debt	6.39M	8.20M	11.79M	14.84M	16.61M	7.65M
Total Liabilities	94.08M	119.72M	109.52M	133.71M	184.96M	130.45M
Stockholders Equity	282.59M	304.77M	464.22M	1.06B	1.24B	1.22B
Cash Flow
Free Cash Flow	-82.78M	-142.56M	-163.59M	-202.77M	-142.10M	-115.78M
Operating Cash Flow	-75.62M	-127.34M	-148.34M	-192.32M	-141.54M	-112.46M
Investing Cash Flow	10.53M	-18.65M	-19.17M	-11.63M	-59.63M	-66.76M
Financing Cash Flow	967.00K	1.38M	2.15M	-3.61M	5.75M	983.12M

American Well Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.61
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMWL, the sentiment is Negative. The current price of 5.61 is below the 20-day moving average (MA) of 5.68, below the 50-day MA of 6.23, and below the 200-day MA of 7.74, indicating a bearish trend. The MACD of -0.29 indicates Positive momentum. The RSI at 32.09 is Neutral, neither overbought nor oversold. The STOCH value of 16.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AMWL.

American Well Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPRX	―	$380.40M	―	-8.21%	―	25.90%	46.13%
TDOC	―	$1.53B	―	-15.42%	―	-2.37%	77.85%
HCAT	―	$227.31M	―	-28.42%	―	5.55%	-0.99%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
AMWL	―	$84.31M	―	-38.52%	―	5.83%	61.94%
EVH	―	$783.78M	―	-13.38%	―	-6.71%	-71.40%
DH	―	$408.92M	―	-64.27%	―	-5.24%	23.59%

American Well Corporate Events

American Well’s Earnings Call: Strategic Wins and Challenges

American Well Corporation’s recent earnings call presented a balanced sentiment, highlighting both strategic wins and challenges. The company reported significant improvements in software revenue and EBITDA, but also faced hurdles such as the exclusion of certain programs from the Military Health System contract extension and a decline in visit metrics, leading to revised revenue guidance. Despite these challenges, cost reduction initiatives and strategic wins suggest a cautiously optimistic outlook.

Amwell Reports Q2 2025 Financial Results and Strategic Progress

American Well Corporation, known as Amwell, is a prominent provider of a comprehensive SaaS-based healthcare platform, focusing on delivering technology-enabled healthcare solutions to enhance patient access and care delivery across the healthcare continuum.