Alright, let’s get down to brass tacks. While Teladoc (NASDAQ:TDOC) might look like it’s taken a beating—its stock plunged from nearly $300 a share to a measly $22, wiping out almost a third of its market cap in the past year—don’t rush to pen its eulogy.
What’s the stock really worth now? Analysts peg it at around $30.11 per share, while discounted cash flow models hint at $27.29.
Teladoc’s Bounce-Back Game
No, Teladoc hasn’t thrown in the towel; quite the opposite. Revenue is starting to flex its muscles again. For those of you getting antsy about declining numbers, remember that Teladoc has been consistently growing its revenue for the past 12 quarters.
We’re talking about a recent quarterly figure of $652.4 million, a modest but meaningful 10.1% jump from last year. This isn’t a company that’s limping along; it’s more like a sprinter catching their breath.
In fact, if you rewind and look at the past nine years, Teladoc has shown a steady growth clip, indicating that its management team knows a thing or two about navigating choppy waters.
The Virtual Doctor Will See You Now
The company isn’t just raking in cash—it’s also clocking in hefty appointment numbers. Over 4.5 million virtual consultations for half a year? That’s nothing to sneeze at.
Especially when you consider it’s up from 4.1 million consultations in all of 2019. This is no flash in the pan – people still value the convenience of virtual healthcare even as traditional doctor visits regain their appeal.
Balancing the Books
How solid is Teladoc’s financial situation?
Well, with a cash reserve nearing the billion-dollar mark—$958 million to be exact—Teladoc isn’t scraping for pennies.
Cash is growing, long-term debts are manageable, and they’ve even pared down that pesky goodwill from their Livongo acquisition. That $9.6 billion albatross? It’s yesterday’s news.
The Telehealth Wave is Real
Before you think of jumping ship, consider this: The telehealth sector is expected to grow at a staggering 24% annual rate through 2030.
And let’s not forget the icing on the cake—a single virtual appointment could save patients up to $121.
With nearly 86 million U.S. members (a 7% YoY increase), Teladoc is in pole position to catch this massive wave.
But wait, there’s more! Teladoc isn’t just about video doctor visits. Their mental health platform, BetterHelp, has been thriving, serving over a million people.
And their chronic care division? It’s got a cool 1.1 million members on board. This isn’t just throwing darts at a board; it’s strategic diversification.
The Profit Train is Coming
With operating margins comfortably north of 70%, the company is cruising toward profitability. Expect a drop in marketing costs as the Teladoc brand continues to gain traction.
And speaking of cheap, the stock is currently priced at a lowly 1.4 times its revenue, making it a hidden gem in a field of overpriced growth stocks.
In-house data shows that three-quarters of employers are planning to increase their virtual healthcare budgets over the next few years. For anyone keeping an eye on the skyrocketing costs of healthcare, that’s a sweet tune.
Final Thoughts
Wall Street has seen its fair share of dramas, disasters, and dazzling comebacks—think Apple, Amazon, Netflix. Teladoc, with its strong financials, diverse growth channels, and prime spot in a booming industry, has all the ingredients to stage its own grand revival.
So if you’re a savvy trader looking for a stock that’s ripe for the picking, put Teladoc in your sights. Sometimes the best opportunities are the ones right under your nose.
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