Teladoc (TDOC) AI Stock Analysis

• Market Cap: $1.40B
• Dividend Yield: N/A
• Average Volume (3M): 4.86M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.38
• Revenue Growth: -2.57%
• EPS Growth: 79.86%
• Country: US
• Employees: 4,620
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -0.19
• Shares Outstanding: 176,690,660
• 10 Day Avg. Volume: 4,200,539
• 30 Day Avg. Volume: 4,862,798
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.60
• P/FCF Ratio: 5.48
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 0.74
• Enterprise Value/Gross Profit: 1.06
• Enterprise Value/Ebitda: 35.19
• 1Y Price Target: $9.15
• Price Target Upside: 11.72% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

• Rating: 51 Neutral
• Price Target: $8.00 ▼(-2.32% Downside)

Teladoc's overall stock score reflects significant financial challenges, with persistent net losses and negative profitability metrics weighing heavily. The technical analysis suggests some stability, but valuation remains a concern due to negative earnings. The earnings call provided some positive insights, particularly in international expansion and product innovation, but challenges in key segments like BetterHelp and chronic care enrollment present risks. Strategic initiatives could drive future growth, but current financial and operational hurdles are substantial.

Positive Factors

Integrated Care Segment Growth

The growth in the Integrated Care segment indicates strong demand and effective service offerings, enhancing Teladoc's market position and supporting long-term revenue stability.

International Business Expansion

International expansion diversifies revenue streams and reduces dependence on the U.S. market, positioning Teladoc for sustained global growth.

Product Innovation and Launches

Continuous product innovation strengthens Teladoc's competitive edge and ability to meet evolving healthcare needs, supporting long-term growth.

Negative Factors

Decline in BetterHelp Revenue

The decline in BetterHelp revenue signals challenges in maintaining user engagement and growth, impacting Teladoc's overall revenue potential.

Chronic Care Program Enrollment Decrease

Reduced enrollment in chronic care programs limits growth in a key segment, potentially affecting Teladoc's ability to scale its healthcare solutions.

Increased Customer Acquisition Costs

Rising customer acquisition costs and higher churn rates can strain profitability and hinder Teladoc's ability to efficiently grow its user base.

Teladoc Business Overview & Revenue Model

Company Description

Teladoc Health, Inc. provides virtual healthcare services in the United States and internationally. The company offers a portfolio of services and solutions covering non-urgent, episodic, chronic, and complicated medical conditions, including diabetes, hypertension, chronic kidney disease, cancer, congestive heart failure, and mental health conditions. It offers a range of programs and services, including primary and specialty care telehealth solutions, chronic condition management, expert medical services, mental health solutions, and platform and program services. The company serves employers, health plans, hospitals and health systems, and insurance and financial services companies, as well as individual members. It offers its products and services under the Teladoc, Livongo, and BetterHelp brands. The company was formerly known as Teladoc, Inc. and changed its name to Teladoc Health, Inc. in August 2018. The company was incorporated in 2002 and is headquartered in Purchase, New York.

How the Company Makes Money

Teladoc generates revenue through a subscription-based model and per-visit fees. Its primary revenue streams include membership fees from health plans, employers, and health systems, which provide access to its telehealth services for their members. Additionally, Teladoc earns revenue from pay-per-visit consultations where patients pay for individual visits to healthcare providers. The company has established significant partnerships with insurance companies and employers, enhancing its reach and utilization. Moreover, Teladoc has expanded its offerings through acquisitions and collaborations, further diversifying its revenue streams and enhancing its service capabilities.

Teladoc Financial Statement Overview

Summary

Teladoc faces significant financial challenges with persistent net losses and negative profitability metrics. While there are strengths, such as a high gross profit margin and positive operating cash flows, the company's inconsistent revenue growth and ongoing operational losses are concerning. Moderate leverage and stable equity ratios provide some balance, but declining equity and asset values signal potential long-term risks. Cash flow stability is a positive aspect but requires careful management to ensure liquidity.

Income Statement

Teladoc's income statement reveals substantial challenges, primarily due to persistent net losses and negative EBIT, suggesting operational inefficiencies. The TTM gross profit margin is robust at approximately 70.24%, indicating effective cost management relative to revenue generation. However, the net profit margin remains negative, reflecting ongoing challenges in achieving profitability. Despite a slight improvement in EBIT and EBITDA margins over time, the negative figures highlight continued operational struggles. Revenue growth has been inconsistent, showing a decline in recent years, which signals a potential slowdown in business expansion.

Balance Sheet

The balance sheet of Teladoc illustrates a moderate financial position with room for improvement. The debt-to-equity ratio is approximately 0.72, indicating moderate leverage but highlighting potential financial risk if revenue growth does not improve. The equity ratio is stable at about 49.15%, suggesting a balanced capital structure. However, declining stockholders' equity and total assets over time raise concerns about long-term financial stability. Return on equity remains negative due to consistent net losses, indicating challenges in generating shareholder value.

Cash Flow

Teladoc's cash flow statement shows signs of improvement, particularly in operating cash flow, which remains positive, reflecting adequate cash generation from core operations. The operating cash flow to net income ratio is promising, indicating efficient cash conversion despite net losses. However, free cash flow has shown volatility, with a recent decline in growth rate. The free cash flow to net income ratio is positive, suggesting some resilience in generating cash relative to losses, but the high variability in cash flows presents potential liquidity risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.54B	2.57B	2.60B	2.41B	2.03B	1.09B
Gross Profit	1.79B	1.82B	1.84B	1.66B	1.38B	703.13M
EBITDA	53.65M	-587.01M	154.00M	-13.38B	-84.67M	-438.01M
Net Income	-207.36M	-1.00B	-220.37M	-13.66B	-428.79M	-485.14M
Balance Sheet
Total Assets	2.89B	3.52B	4.39B	4.35B	17.73B	17.76B
Cash, Cash Equivalents and Short-Term Investments	679.62M	1.30B	1.12B	918.18M	896.02M	786.57M
Total Debt	1.03B	1.58B	1.59B	1.57B	1.27B	1.47B
Total Liabilities	1.47B	2.03B	2.07B	2.04B	1.69B	1.87B
Stockholders Equity	1.42B	1.49B	2.33B	2.31B	16.05B	15.88B
Cash Flow
Free Cash Flow	238.64M	282.89M	193.67M	16.53M	130.06M	-79.55M
Operating Cash Flow	303.43M	293.68M	350.02M	189.29M	193.99M	-53.51M
Investing Cash Flow	-243.76M	-124.05M	-156.35M	-167.74M	-72.98M	-590.98M
Financing Cash Flow	-546.41M	8.31M	10.85M	6.50M	40.95M	859.14M

Teladoc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TDOC, the sentiment is Positive. The current price of 8.19 is above the 20-day moving average (MA) of 7.81, above the 50-day MA of 7.66, and below the 200-day MA of 8.54, indicating a neutral trend. The MACD of 0.13 indicates Negative momentum. The RSI at 59.70 is Neutral, neither overbought nor oversold. The STOCH value of 75.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TDOC.

Teladoc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSTM	75 Outperform	868.49M	43.59	5.80%	0.41%	3.50%	13.99%
TDOC	51 Neutral	$1.40B	―	-14.18%	―	-2.57%	79.86%
EVH	51 Neutral	1.01B	-5.35	-18.04%	―	-6.71%	-71.40%
SOPH	51 Neutral	265.59M	-3.58	-95.70%	―	7.31%	-7.49%
AMWL	50 Neutral	104.83M	-0.80	-68.29%	―	5.83%	61.94%
HCAT	49 Neutral	207.60M	-1.95	-28.81%	―	5.55%	-0.99%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%