Teladoc Health Share Forecast January 2022 – Time to Buy TDOC?
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Shares of virtual healthcare provider Teladoc Health (NYSE: TDOC) are in the green today, after closing at $79.57 as of January 14th (19:59 EST). Teladoc shares were decimated in 2021 as a result of membership growth slowing. The company has strong financials which put it in a good position for more growth opportunities.
Teladoc – Technical Analysis
The financial statement of Teladoc Health indicates the market cap is at $12.738 billion will total assets worth $17.653 billion. Revenue for 2020 was at $1.09 billion with a profit margin of -44.35% compared to $553.31 million in 2019.
Oscillators such as Relative Strength Index (14)(34.69) and Stochastic %K (14, 3, 3)(18.75) are neutral. Moving averages such as Exponential Moving Average (10)(83.83), Simple Moving Average (10)(84.33), Exponential Moving Average (20)(88.23), Simple Moving Average (20)(89.18) and Exponential Moving Average (30)(92.75) are indicating a sell action.
68% of all retail investor accounts lose money when trading CFDs with this provider.
Recent Developments
Teladoc Health was founded and launched in 2002 and has made multiple acquisitions such as BetterHelp in 2015, Best Doctors in 2017, and Advance Medical in 2018. The company became the largest telemedicine provider in the United States after acquiring Consult A Doctor and AmeriDoc, both Teladoc’s main competitors in 2014. This allowed it to raise $50 million from private investors in September 2014, bringing total funding to $100 million.
It is operating in 130 countries with 40 million members worldwide. Teladoc Health gives patients access to a doctor around the clock, even in non-emergencies via its virtual primary care program, Primary 360. CVS Health-owned Aetna, one of the largest health insurance companies in the U.S., has made Teladoc Health’s Primary360 available to its members nationwide.
In July 2020, Teladoc acquired InTouch HealthIt partnered with the CDC to provide near real-time surveillance data on the spread of the Coronavirus in March 2020. It also completed its $18.5 billion acquisition of Livongo health that year.
Teladoc has reported positive free cash flow in the three of the last 5 quarters. The company’s free cash has totalled $101 million currently, from a negative $89 million in 2016-2019. The company has reported cash and cash equivalents of $824 million. Teladoc’s U.S. paid membership count is up just 2$ year over year from 52.5 million in the last quarter. But the revenue the company is generating per customer is growing at a much higher rate. According to Teladoc’s Chief Financial Officer Mala Murthy, the company is earning $2.57/month per member, more than double the $1.18 that they were generating a year ago.
Should You Buy TDOC Shares?
Investors interested in Teladoc should look at the company’s improving financials, especially faster earnings growth. There was a revenue growth of $1.5 billion over the past nine months, which is double the $710.6 million a year ago. However, this increase can also be the result of its acquisition of Livongo Health, which closed on Oct. 30, 2020.
Teladoc has a projected EBITDA of $263 million in 2021, more than double the $127 million it reported in the previous year. Aided by Primary360, Teladoc’s earnings will only continue to rise in the future. At nearly $80 per share, the last time Teladoc shares were so cheap was back in 2019, before the deal with Livongo was completed and so much growth was achieved. While the recent decline in share prices may cause some concerns, it shouldn’t matter to long-term investors. Considering this TDOC shares are a buy at the moment.
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