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AMWL

American Well NYSE:AMWL Stock Report

Last Price

US$4.70

Market Cap

US$1.3b

7D

-8.0%

1Y

-53.6%

Updated

17 Aug, 2022

Data

Company Financials +
AMWL fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance0/6
Financial Health5/6
Dividends0/6

AMWL Stock Overview

American Well Corporation operates as a telehealth software company that enables digital delivery of care for healthcare.

American Well Competitors

Price History & Performance

Summary of all time highs, changes and price drops for American Well
Historical stock prices
Current Share PriceUS$4.70
52 Week HighUS$11.40
52 Week LowUS$2.52
Beta0
1 Month Change10.07%
3 Month Change55.63%
1 Year Change-53.56%
3 Year Changen/a
5 Year Changen/a
Change since IPO-79.63%

Recent News & Updates

Aug 04

American Well  GAAP EPS of -$0.25 beats by $0.01, revenue of $64.52M beats by $0.39M

American Well  press release (NYSE:AMWL): Q2 GAAP EPS of -$0.25 beats by $0.01. Revenue of $64.52M (+7.1% Y/Y) beats by $0.39M. Reported gross margin of 43.4% Improved adjusted EBITDA to ($42.8) million from ($47.1) million in the first quarter of 2022 Total active providers grew 46% to 103,500, compared to 71,000 in the second quarter of 2021 Total visits grew 19% to 1.5 million compared to the second quarter of 2021 Cash and short-term securities as of quarter-end were approximately $630.1 million.

Jul 25

Amwell: Still Not Very Well

Amwell is set to report another weak quarter in Q2'22 leading to an adjusted EBITDA loss for the year of up to $200 million. Amazon heavily investing in the telehealth market remains a major threat. The stock won't be investable until growth returns and the EBITDA losses are cut. Amwell (AMWL) investors continue to learn the hard lesson of how a hot sector doesn't always led to big profits. The telehealth sector boomed during covid, but some companies still don't have the business models in place to benefit from the growing demand for digital care delivery. My investment thesis is more Bearish on the stock after the rally back towards $5 while the stock market and economy have weakened in the last few months. More Weak Quarters Back in Q1, Amwell reported revenues that missed estimates by $0.74 million and only grew 11.5% YoY. The company guided to 2022 revenues of $280 million, roughly in line with consensus estimates despite the Q1 miss. The problem here is that Amwell continues to forecast massive annual adjusted EBITDA losses of up to $200 million. The virtual healthcare platform doesn't have the growth or the revenue base to come anywhere close to eliminating the losses in the years ahead. The numbers reported by Amwell continue to highlight the issue with a company creating a modern platform solving problems while not being able to charge the fees commensurate with the benefits. Whether due to competing platforms or the lack of perceived benefits, the company isn't able to generate anywhere near the revenues to match the costs to develop the platform. The key Q1 subscription revenues were still stuck below $30 million. Amwell is busy migrating customers to the Converge platform, but the company is constantly spending more money on R&D at $37.8 million in the quarter than the telehealth platform generates on subscription revenue at just $28.7 million or total gross profits of a similar $27.5 million. When stripping out one-time and non-cash charges, Amwell had a Q1'22 adjusted EBITDA loss of $47.1 million on revenue of only $64.2 million. The company doesn't forecast much of an improvement on the bottom line for the rest of the year. Amwell forecasts massive cuts to the EBITDA losses by next year due to revenue growth and normalized costs. The problem here is that the telehealth company still forecasts only reaching breakeven in 2025 with revenues reaching $500 million. Source: Path to Profitability presentation The Converge platform drove an increase in providers on the platform to over 100K, up an impressive 11K providers in just one quarter. Regardless, Amwell still forecasts an EBITDA loss in 2024 of at least 10%. The market won't get behind this stock with these large EBITDA losses in future years. Competitive Threat The healthcare sector is massive, but the aggressive entry of Amazon (AMZN) into the space doesn't help any industry player. The tech giant already has Amazon Care available virtually nationwide and now the company has agreed to acquire One Medical (ONEM) to expand into membership-based primary care focused on digital solutions. Amazon agreed to pay $3.9 billion for the business that forecasts generating $1.075 billion in 2022 revenues. One has to wonder how much the tech giant will cut into the growth of Amwell with an expanding primary care virtual platform. Remember, the telehealth provider just missed Q1'22 targets and Amazon could make it far more difficult to hit future targets. Amwell has no measure of safety here unlike profitable companies that can handle competitive impacts in the short term.

Shareholder Returns

AMWLUS Healthcare ServicesUS Market
7D-8.0%-4.4%1.1%
1Y-53.6%-44.7%-9.0%

Return vs Industry: AMWL underperformed the US Healthcare Services industry which returned -42.8% over the past year.

Return vs Market: AMWL underperformed the US Market which returned -8.9% over the past year.

Price Volatility

Is AMWL's price volatile compared to industry and market?
AMWL volatility
AMWL Average Weekly Movement11.7%
Healthcare Services Industry Average Movement11.7%
Market Average Movement7.6%
10% most volatile stocks in US Market17.0%
10% least volatile stocks in US Market3.1%

Stable Share Price: AMWL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: AMWL's weekly volatility (12%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20061,035Ido Schoenberghttps://amwell.com

American Well Corporation operates as a telehealth software company that enables digital delivery of care for healthcare. The company products offer urgent care; scheduled visits; acute behavioral health; telestroke; pediatrics; retail health, school health, and home settings. Its application offers urgent care; pediatrics; therapy; menopause nutrition; end-stage renal disease and dialysis; dermatology care; behavioral health therapy; and musculoskeletal care.

American Well Fundamentals Summary

How do American Well's earnings and revenue compare to its market cap?
AMWL fundamental statistics
Market CapUS$1.29b
Earnings (TTM)-US$238.47m
Revenue (TTM)US$263.72m

4.9x

P/S Ratio

-5.4x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AMWL income statement (TTM)
RevenueUS$263.72m
Cost of RevenueUS$152.14m
Gross ProfitUS$111.58m
Other ExpensesUS$350.05m
Earnings-US$238.47m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.87
Gross Margin42.31%
Net Profit Margin-90.42%
Debt/Equity Ratio0%

How did AMWL perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is AMWL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AMWL?

Other financial metrics that can be useful for relative valuation.

AMWL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.6x
Enterprise Value/EBITDA-3.1x
PEG Ration/a

Price to Sales Ratio vs Peers

How does AMWL's PS Ratio compare to its peers?

AMWL PS Ratio vs Peers
The above table shows the PS ratio for AMWL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average8.2x
PHR Phreesia
5.4x26.5%US$1.2b
SLP Simulations Plus
24.3x18.1%US$1.3b
NXGN NextGen Healthcare
2x5.8%US$1.2b
MDRX Allscripts Healthcare Solutions
1.3x-0.1%US$1.9b
AMWL American Well
4.9x16.6%US$1.3b

Price-To-Sales vs Peers: AMWL is good value based on its Price-To-Sales Ratio (4.9x) compared to the peer average (8.2x).


Price to Earnings Ratio vs Industry

How does AMWL's PE Ratio compare vs other companies in the US Healthcare Services Industry?

Price-To-Sales vs Industry: AMWL is expensive based on its Price-To-Sales Ratio (4.9x) compared to the US Healthcare Services industry average (2.8x)


Price to Sales Ratio vs Fair Ratio

What is AMWL's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AMWL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio4.9x
Fair PS Ratio2.9x

Price-To-Sales vs Fair Ratio: AMWL is expensive based on its Price-To-Sales Ratio (4.9x) compared to the estimated Fair Price-To-Sales Ratio (2.9x).


Share Price vs Fair Value

What is the Fair Price of AMWL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AMWL ($4.7) is trading below our estimate of fair value ($24.7)

Significantly Below Fair Value: AMWL is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is American Well forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


29.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMWL is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: AMWL is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: AMWL is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: AMWL's revenue (16.6% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: AMWL's revenue (16.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AMWL is forecast to be unprofitable in 3 years.


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Past Performance

How has American Well performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-29.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AMWL is currently unprofitable.

Growing Profit Margin: AMWL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AMWL is unprofitable, and losses have increased over the past 5 years at a rate of 29% per year.

Accelerating Growth: Unable to compare AMWL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AMWL is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare Services industry (2.8%).


Return on Equity

High ROE: AMWL has a negative Return on Equity (-20.57%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is American Well's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: AMWL's short term assets ($706.6M) exceed its short term liabilities ($116.3M).

Long Term Liabilities: AMWL's short term assets ($706.6M) exceed its long term liabilities ($21.3M).


Debt to Equity History and Analysis

Debt Level: AMWL is debt free.

Reducing Debt: AMWL has not had any debt for past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: AMWL has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if AMWL has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


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Dividend

What is American Well current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate AMWL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate AMWL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AMWL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AMWL's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as AMWL has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.6yrs

Average management tenure


CEO

Ido Schoenberg (57 yo)

15.58yrs

Tenure

US$39,988,708

Compensation

Dr. Ido Schoenberg, M.D., serves as Chairman and Co-Chief Executive Officer of American Well Corporation since 2007, oversees the business operations. He is a Member of Advisory Board of New Era Capital Pa...


CEO Compensation Analysis

Compensation vs Market: Ido's total compensation ($USD39.99M) is above average for companies of similar size in the US market ($USD5.43M).

Compensation vs Earnings: Ido's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: AMWL's management team is considered experienced (3.6 years average tenure).


Board Members

Experienced Board: AMWL's board of directors are considered experienced (6.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: AMWL insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12.6%.


Top Shareholders

Company Information

American Well Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: American Well Corporation
  • Ticker: AMWL
  • Exchange: NYSE
  • Founded: 2006
  • Industry: Health Care Technology
  • Sector: Healthcare
  • Implied Market Cap: US$1.286b
  • Shares outstanding: 273.57m
  • Website: https://amwell.com

Number of Employees


Location

  • American Well Corporation
  • 75 State Street
  • 26th Floor
  • Boston
  • Massachusetts
  • 2109
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/17 00:00
End of Day Share Price2022/08/17 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.