MCI Onehealth Technologies, Inc. Class A (AIDX) AI Stock Analysis

• Market Cap: C$295.01M
• Dividend Yield: N/A
• Average Volume (3M): 407.35K
• Price to Earnings (P/E): ―
• Beta (1Y): -1.53
• Revenue Growth: -17.86%
• EPS Growth: 64.04%
• Country: CA
• Employees: 102
• Sector: Healthcare
• Sector Strength: 62
• Industry: Healthcare Providers & Services
• EPS (TTM): -0.19
• Shares Outstanding: 169,884,030
• 10 Day Avg. Volume: 465,874
• 30 Day Avg. Volume: 407,352
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 20.10
• Price to Cash Flow (P/CF): -11.60
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$4.27
• Price Target Upside: 190.48% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

Healwell AI's overall stock score reflects its financial difficulties and technical challenges, despite promising strategic developments and growth initiatives. While corporate events and earnings call guidance showcase potential for future success, the current financial and technical indicators suggest caution. Improvements in profitability and cash flow are crucial for a more favorable outlook.

Positive Factors

Partnerships

A partnership with WELL includes providing its doctor/patient data to be used with HEALWELL’s investments in AI, enhancing the company's capabilities.

Strategic Acquisition

The announced acquisition of two segments from Orion Health adds population health management, clinical research, and preventative care solutions, expected to significantly boost revenue.

Negative Factors

Capital Requirements

M&A activity will likely require additional capital and/or share issuances, which could impact current shareholders.

Financial Valuation

AIDX currently trades at an EV/revenue multiple of 9.2x based on our 2025E revenue vs. a peer group average of 2.6x, which could be seen as overvalued by some investors.

MCI Onehealth Technologies, Inc. Class A Business Overview & Revenue Model

Company Description

MCI Onehealth Technologies, Inc. Class A (AIDX) is a healthcare technology company focused on improving patient outcomes and healthcare efficiency through the integration of healthcare services and technology. The company operates primarily in the healthcare sector, offering a range of digital health solutions, diagnostic services, and personalized medicine tools designed to enhance the delivery and management of healthcare services. MCI Onehealth leverages technology to empower patients and healthcare providers with innovative tools and services that facilitate better decision-making and care management.

How the Company Makes Money

MCI Onehealth Technologies, Inc. generates revenue through a multi-faceted business model that includes providing healthcare services and developing technology solutions for healthcare management. Key revenue streams include fees from healthcare services provided through its network of clinics, sales of diagnostic and personalized medicine products, and technology solutions offered to healthcare providers and patients. The company also engages in partnerships with healthcare organizations and technology firms to expand its service offerings and enhance its technological capabilities. These partnerships, along with its proprietary platforms and solutions, contribute significantly to its earnings by increasing its market reach and service efficiency, thus attracting more clients and users.

MCI Onehealth Technologies, Inc. Class A Financial Statement Overview

Summary

The financial performance of Healwell AI is strained, primarily due to significant net losses and negative cash flows. The income statement reveals challenges in profitability with negative margins, while the balance sheet shows a reasonable debt-to-equity ratio but low equity reliance. Cash flow issues further exacerbate the financial instability, necessitating improvements in cost control and revenue growth.

Income Statement

The income statement shows significant challenges with profitability. The company has a negative net profit margin of -91.44% for TTM, driven by substantial net losses. Revenue growth is erratic, with a drop from 2020 to 2021 and a slight increase in the most recent period. The EBIT and EBITDA margins are also negative, indicating operational inefficiencies and high costs relative to revenue.

Balance Sheet

The balance sheet reflects a moderate financial position with some concerns. The debt-to-equity ratio is approximately 0.28 for TTM, which is reasonable, suggesting manageable leverage. However, the equity ratio is low at 56.21%, indicating reliance on liabilities. The return on equity is negative due to net losses, highlighting profitability issues.

Cash Flow

Cash flow performance is weak, with negative free cash flow growth and a negative operating cash flow to net income ratio for TTM. The company is experiencing cash outflows from operations, which could strain liquidity. Despite financing activities providing cash inflows, the free cash flow remains negative.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
22.12M	7.32M	10.42M	47.82M	38.57M	46.29M
	Gross Profit
8.94M	1.26M	3.71M	15.01M	64.22M	15.26M
	EBIT
-9.89M	-17.59M	-17.55M	-16.43M	-842.00K	523.00K
	EBITDA
-11.72M	-16.11M	-13.94M	-11.44M	2.11M	3.76M
	Net Income Common Stockholders
-20.22M	-31.60M	-21.09M	-15.67M	-1.03M	-122.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.80M	19.16M	1.80M	7.68M	1.27M	1.52M
	Total Assets
45.63M	53.70M	45.63M	60.89M	22.36M	22.68M
	Total Debt
17.42M	20.93M	17.42M	14.35M	15.04M	15.95M
	Net Debt
16.01M	1.77M	16.01M	7.21M	14.15M	14.82M
	Total Liabilities
32.13M	32.23M	32.13M	31.14M	22.12M	20.42M
	Stockholders Equity
11.78M	12.65M	11.78M	28.03M	114.00K	2.14M
Cash Flow		Free Cash Flow
-26.27M	-10.86M	-9.49M	-9.47M	3.99M	3.09M
	Operating Cash Flow
-24.45M	-10.80M	-8.35M	-7.10M	4.22M	3.21M
	Investing Cash Flow
-15.06M	1.35M	-1.17M	-8.64M	-234.00K	-122.00K
	Financing Cash Flow
53.36M	27.20M	3.78M	21.99M	-4.22M	-2.89M

MCI Onehealth Technologies, Inc. Class A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.47
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AIDX, the sentiment is Negative. The current price of 1.47 is below the 20-day moving average (MA) of 1.54, below the 50-day MA of 1.62, and below the 200-day MA of 1.76, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 41.89 is Neutral, neither overbought nor oversold. The STOCH value of 17.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:AIDX.

MCI Onehealth Technologies, Inc. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WELL	77 Outperform	C$1.09B	14.50	9.25%	―	36.56%	―
Sector *	48 Neutral	$6.86B	1.11	-50.22%	2.47%	16.71%	1.53%
AIDX	45 Neutral	C$295.01M	―	-68.57%	―	-17.86%	64.04%

MCI Onehealth Technologies, Inc. Class A Corporate Events

HEALWELL AI Secures $30M for Orion Health Acquisition

HEALWELL AI Inc. has successfully closed the $30 million convertible debt tranche of its $55 million bought deal financing, which will aid in funding its acquisition of Orion Health. This transaction, co-led by major financial institutions, showcases HEALWELL’s strategic expansion into international markets, potentially enhancing its industry positioning and operational capabilities.

HEALWELL AI Raises $25.5M for Orion Health Acquisition

HEALWELL AI Inc. has successfully raised $25.5 million from the equity tranche of its $55 million bought deal financing. The funds will be used for the acquisition of Orion Health, a move that positions HEALWELL to enhance its capabilities in the healthcare AI sector. The completion of the convertible debenture portion of the financing is anticipated by January 28, 2025, which will further support the strategic acquisition and growth plans.

HEALWELL AI Secures $25.5M to Fund Orion Health Acquisition

HEALWELL AI has successfully completed the equity tranche of its $55 million bought deal financing, raising $25.5 million to fund the acquisition of Orion Health. This move aims to enhance HEALWELL’s capabilities in healthcare AI, pending the completion of the convertible debenture portion by January 28, 2025. If conditions for the acquisition are unmet, the proceeds will be returned to investors, maintaining transparency with stakeholders.

HEALWELL AI Secures Approval for Orion Health Acquisition and Financing

HEALWELL AI Inc. has received shareholder approval for its acquisition of Orion Health and a $55 million bought-deal financing, eliminating the need for a special shareholder meeting. Additionally, a Schedule A Bank has granted internal risk approval for a $50 million senior secured credit facility, contingent upon finalizing a credit agreement. The acquisition and financing are expected to enhance the company’s operational capacity and market positioning, with the upsized offering anticipated to close later this week.

HEALWELL AI’s VeroSource Expands Across Canada

HEALWELL AI Inc.’s subsidiary, VeroSource Solutions, is demonstrating significant growth and expansion across Canada’s public sector with its innovative healthcare technologies. The company’s Patient Summary tool, launched in New Brunswick, allows for secure sharing of health information and has seen substantial user growth. Additionally, VeroSource’s scalable technology has driven increased engagement in Saskatchewan and generated revenue from three other provinces.

HEALWELL AI Forms Strategic Advisory Board

HEALWELL AI Inc. has formed a Strategic Advisory Board to spearhead its global growth and innovation in preventative healthcare, welcoming Beatrice York, Dr. Marcel Reichart, and Reeva Misra as its inaugural members. These new advisors bring significant expertise in AI, healthcare, and international business, aiming to drive both societal and shareholder value. The board will guide HEALWELL’s strategic initiatives, ensuring the company’s cutting-edge solutions align with ethical and regulatory standards.

HEALWELL’s Pentavere Wins Prix Galien USA 2024

HEALWELL’s subsidiary, Pentavere Research Group, has won the prestigious Prix Galien USA 2024 Award for Best Digital Health Startup, recognizing its DARWEN™ AI platform. This award highlights Pentavere’s significant contributions to making healthcare more accessible and personalized through innovative AI technologies.

HEALWELL’s Revenue Soars with Strategic Acquisitions

HEALWELL reports a remarkable 738% increase in quarterly revenue, driven by key acquisitions and the commercialization of AI-enabled solutions. The company’s strategic acquisitions and partnerships with top pharmaceutical companies bolster its position in the healthcare technology sector. HEALWELL is on track to achieve a revenue run-rate approaching $100 million, positioning itself for substantial growth.

HEALWELL Expands Pharmaceutical Partnerships

HEALWELL has significantly expanded its partnerships, executing five new agreements with pharmaceutical companies in Q3-2024, increasing its total to 27. The company also generated patient identification revenue from 23 pharmaceutical partners, marking substantial progress in commercializing its AI-driven solutions.