Review of Well Health Technologies

APR 25, 2024 - WELL is one of the main serial acquirers that operates in the healthcare market in Canada. WELL has been an active user of debt and equity issuance to implement its acquisitive growth strategy, which could be potentially a risk for dilution or unsustainable leverage level. The guidance for FY2024 revenue growth is impressive, indicating a healthy growth profile. The low valuation multiple relative to historical averages and its peer group is also appealing for a long-term hold here. We think investors could do well owning WELL over the next three to five years as the company improves profitability and the market re-rates its valuation, we are maintaining our rating of ‘B+’.