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Ehealth (EHTH)
NASDAQ:EHTH
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Ehealth
(NASDAQ:EHTH)
54Neutral
Positive Factors
Cost Management
Investments in more effective brand advertising and maintaining a more tenured agent resulted in a 24% year-over-year decline in acquisition costs.
Revenue Growth
Fourth-quarter revenue grew 27%, well ahead of the 10% estimate, driven by strong enrollment growth and reduced broker competition.
Negative Factors
Regulatory Challenges
The modest revenue outlook reflects tough comparison for the upcoming AEP if shopping reverts to more normalized levels and regulatory changes limit plan switching for dual eligibles.
Ehealth (EHTH) vs. S&P 500 (SPY)
Market Cap
$228.46M
Dividend YieldN/A
Average Volume (3M)303.97K
Price to Earnings (P/E)―
Beta (1Y)0.86
Revenue Growth17.56%
EPS Growth48.73%
CountryUS
Employees1,903
SectorFinancial
Sector Strength77
IndustryInsurance
Share Statistics
EPS (TTM)-1.32
Shares Outstanding29,942,604
10 Day Avg. Volume350,110
30 Day Avg. Volume303,967
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.43
Price to Cash Flow (P/CF)-2.10
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$10.25Price Target Upside34.51% Upside
Rating ConsensusHold
Number of Analyst Covering4
Ehealth Business Overview & Revenue Model
Company DescriptioneHealth, Inc. (EHTH) is a technology-driven health insurance marketplace headquartered in the United States. The company operates in the health insurance sector, providing a platform that enables consumers to research, compare, and purchase a wide range of health insurance products, including individual and family health insurance, Medicare plans, small business health insurance, and ancillary health products. eHealth's core services are designed to facilitate a seamless online experience for both consumers and insurance providers, leveraging advanced technology to enhance the insurance shopping process.
How the Company Makes MoneyeHealth makes money primarily through commissions earned from insurance carriers when consumers purchase insurance policies via its platform. These commissions are the primary revenue stream and are typically based on a percentage of the premium paid by the policyholder. Additionally, eHealth may earn revenue from marketing fees or other service fees charged to insurance carriers for additional services provided, such as advertising or enhanced listing placement on its platform. The company also engages in partnerships with various insurance companies to expand its product offerings and reach a broader customer base. Factors contributing to eHealth's earnings include the volume of policies sold, the diversity of insurance products offered, and its ability to attract and retain a large customer base through its user-friendly platform and effective online marketing strategies.
Ehealth Financial Statement Overview
Summary
Ehealth demonstrates strong revenue growth and an impressive gross profit margin. However, persistent net losses and negative cash flow reflect underlying operational and cash management challenges. The balance sheet indicates a stable financial position with low leverage, yet profitability metrics suggest the need for strategic improvements to enhance shareholder returns and cash generation. Overall, while growth prospects are positive, Ehealth must focus on achieving net profitability and improving cash flow sustainability to strengthen its financial health.Income Statement
Ehealth's TTM (Trailing-Twelve-Months) revenue of $532.41M shows a positive growth rate of 17.56% compared to the previous year, indicating a strong upward trajectory. However, the company has been unable to achieve net profitability, with a TTM net loss of $1.74M, resulting in a negative net profit margin of -0.33%. The EBIT margin has improved to 6.18% in the TTM, reflecting some operational efficiency gains. The gross profit margin remains high at 99.77%, signaling a strong ability to convert revenue into gross profit, but the negative net income highlights challenges in managing overall expenses.65
Positive
Balance Sheet
Ehealth's financial structure shows a debt-to-equity ratio of 0.16, reflecting a relatively low level of leverage. However, the return on equity (ROE) is negative at -0.29%, indicating inefficiencies in generating returns for shareholders. The equity ratio of 50.92% suggests a stable capital structure with a balanced mix of debt and equity financing. Despite low leverage, the company needs to address profitability to enhance shareholder value.55
Neutral
Cash Flow
Ehealth's cash flow management appears challenging, with a negative free cash flow of $27.90M in the TTM and negative operating cash flow to net income ratio. The free cash flow has decreased from the previous year, indicating difficulties in generating cash from operations. The company's inability to convert accounting profits into cash is a concern, highlighting potential liquidity risks.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 532.41M | 452.87M | 405.36M | 538.20M | 582.77M | Gross Profit |
| 530.62M | 451.10M | 403.71M | 536.21M | 578.69M | EBIT |
| 23.57M | -29.07M | -83.10M | -74.42M | 53.32M | EBITDA |
| 46.81M | -9.16M | -42.37M | -105.18M | 66.27M | Net Income Common Stockholders |
| 10.06M | -28.21M | -88.72M | -104.38M | 45.45M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 82.24M | 121.65M | 144.40M | 123.23M | 93.38M | Total Assets |
| 1.16B | 1.11B | 1.11B | 1.15B | 1.04B | Total Debt |
| 96.92M | 103.16M | 106.80M | 41.37M | 46.56M | Net Debt |
| 57.72M | -12.56M | -37.60M | -40.56M | 2.80M | Total Liabilities |
| 567.00M | 209.26M | 198.37M | 167.18M | 202.46M | Stockholders Equity |
| 588.43M | 904.08M | 914.24M | 982.11M | 837.56M |
| Cash Flow | Free Cash Flow | |||
| -18.37M | -17.47M | -42.38M | -183.48M | -131.62M | Operating Cash Flow |
| -18.37M | -6.69M | -26.87M | -162.62M | -107.86M | Investing Cash Flow |
| -48.42M | -15.89M | 25.86M | -12.63M | -73.28M | Financing Cash Flow |
| -9.67M | -6.22M | 63.84M | 213.24M | 201.25M |
Ehealth Technical Analysis
Negative
7.62
Price Trends
9.58
Negative
7.52
Positive
6.03
Positive
Market Momentum
-0.42
Positive
30.15
Neutral
15.61
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EHTH, the sentiment is Negative. The current price of 7.62 is below the 20-day moving average (MA) of 9.44, below the 50-day MA of 9.58, and above the 200-day MA of 6.03, indicating a neutral trend. The MACD of -0.42 indicates Positive momentum. The RSI at 30.15 is Neutral, neither overbought nor oversold. The STOCH value of 15.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EHTH.
Ehealth Risk Analysis
Ehealth disclosed 45 risk factors in its most recent earnings report. Ehealth reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ehealth Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $576.68M | ― | -4.16% | ― | 25.67% | 72.08% | |
64 Neutral | $13.80B | 10.64 | 9.23% | 4.22% | 17.66% | -7.66% | |
61 Neutral | $2.71B | 10.49 | 8.73% | ― | 7.69% | ― | |
54 Neutral | $228.46M | ― | 1.10% | ― | 17.56% | 48.73% | |
52 Neutral | $317.58M | ― | -1.24% | ― | 8.74% | 89.80% | |
45 Neutral | $1.55B | ― | -52.46% | ― | -1.26% | -338.56% | |
43 Neutral | $125.50M | ― | -54.13% | ― | -1.81% | 70.88% |
* Financial Sector Average
Performance Comparison
EHTH
Ehealth
7.62
1.36
21.73%
ACHC
Acadia Healthcare
29.12
-51.19
-63.74%
TDOC
Teladoc
9.00
-6.37
-41.44%
SLQT
SelectQuote
3.45
1.66
92.74%
GOCO
GoHealth
13.75
0.59
4.48%
AMWL
American Well
8.14
-10.06
-55.27%
Ehealth Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -16.81% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Positive
The earnings call depicted a strong performance by eHealth with record-breaking revenue and growth in the Medicare segment, supported by improved operational efficiency and increased brand recognition. However, there were challenges in the Amplify segment and a decline in the E&I segment, alongside a challenging regulatory environment.Highlights
Record-Breaking Revenue and Growth
Fourth quarter revenue increased 27% to a record high $315.2 million. GAAP net income increased 87% to $97.5 million. Full year 2024 revenue grew 18% to $532.4 million.
Medicare Segment Success
Medicare submissions grew 38%. The Medicare segment revenue increased 31% to $305.8 million. The Medicare Advantage LTV to CAC ratio improved from 1.5x to 2x.
Operational Efficiency
Fourth quarter adjusted EBITDA grew 74% to $121.3 million. Acquisition cost per approved Medicare member improved 23%.
Brand Recognition and Direct Channels
Brand recognition metrics showed a 23% increase in total aided awareness. Branded direct marketing channels drove over 100% growth in enrollments compared to the prior year.
Lowlights
Amplify Segment Underperformance
Amplify volume came in below expectations as carriers focused on margin protection rather than enrollment growth.
Decline in E&I Segment
E&I segment revenue was down 33% to $9.4 million in the fourth quarter.
Challenging Regulatory Environment
The market faced unprecedented disruption due to regulatory pressure, causing carriers to make material changes to their strategies.
Company Guidance
During eHealth Inc.'s fourth quarter and fiscal year 2024 earnings call, the company reported remarkable financial results, significantly surpassing their revised guidance for revenue, earnings, and adjusted EBITDA. Fourth quarter revenue increased by 27%, while Medicare submissions rose by 38%, with a notable 49% growth in the Agency model. The adjusted EBITDA for the fourth quarter grew over 70%, reflecting substantial margin expansion. eHealth's guidance for fiscal 2025 forecasts total revenue between $510 million and $550 million, with GAAP net income ranging from a net loss of $10 million to a net income of $15 million. The adjusted EBITDA is expected to range from $35 million to $60 million, with operational cash flow projected between negative $25 million and positive $10 million. Despite the exceptional performance in 2024, eHealth anticipates relatively flat revenues in 2025, attributed to expectations of a more stable consumer demand environment and a cautious approach to market dynamics.Ehealth Corporate Events
Business Operations and StrategyFinancial Disclosures
eHealth Boosts 2024 Outlook Following Strong AEP Performance
Positive
Dec 17, 2024
eHealth, Inc. announced strong performance during the Annual Enrollment Period (AEP), which led to an updated guidance for the fiscal year 2024. The company’s successful enrollment growth and enhanced margins are attributed to increased demand for its services and successful transformation initiatives. The updated guidance includes increased revenue expectations, improved net income ranges, and higher adjusted EBITDA, highlighting eHealth’s strategic positioning in the Medicare market and its readiness to capture further growth opportunities.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.