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
|Historical stock prices|
|Current Share Price||US$4.70|
|52 Week High||US$11.40|
|52 Week Low||US$2.52|
|1 Month Change||10.07%|
|3 Month Change||55.63%|
|1 Year Change||-53.56%|
|3 Year Change||n/a|
|5 Year Change||n/a|
|Change since IPO||-79.63%|
Recent News & Updates
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.
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.
|AMWL||US Healthcare Services||US Market|
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.
|AMWL Average Weekly Movement||11.7%|
|Healthcare Services Industry Average Movement||11.7%|
|Market Average Movement||7.6%|
|10% most volatile stocks in US Market||17.0%|
|10% least volatile stocks in US Market||3.1%|
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
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
|AMWL fundamental statistics|
Is AMWL overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|AMWL income statement (TTM)|
|Cost of Revenue||US$152.14m|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||-0.87|
|Net Profit Margin||-90.42%|
How did AMWL perform over the long term?See historical performance and comparison
Is AMWL undervalued compared to its fair value, analyst forecasts and its price relative to the market?
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
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.
|What is AMWL's n/a Ratio?|
Price to Sales Ratio vs Peers
How does AMWL's PS Ratio compare to its peers?
|AMWL PS Ratio vs Peers|
|Company||PS||Estimated Growth||Market Cap|
SLP Simulations Plus
NXGN NextGen Healthcare
MDRX Allscripts Healthcare Solutions
AMWL American Well
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.
|Current PS Ratio||4.9x|
|Fair PS Ratio||2.9x|
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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How is American Well forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
Future Growth Score1/6
Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
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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How has American Well performed over the past 5 years?
Past Performance Score0/6
Past Performance Score 0/6
Growing Profit Margin
Earnings vs Industry
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.
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How is American Well's financial position?
Financial Health Score5/6
Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
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.
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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What is American Well current dividend yield, its reliability and sustainability?
Dividend Score 0/6
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.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Ido Schoenberg (57 yo)
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.
Experienced Management: AMWL's management team is considered experienced (3.6 years average tenure).
Experienced Board: AMWL's board of directors are considered experienced (6.3 years average tenure).
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
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12.6%.
American Well Corporation's employee growth, exchange listings and data sources
- 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
- American Well Corporation
- 75 State Street
- 26th Floor
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/08/17 00:00|
|End of Day Share Price||2022/08/17 00:00|
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.