Teladoc Health Inc is one of the leading providers of virtual healthcare services in the world. The company offers a range of telehealth solutions, such as online consultations, chronic care management, mental health counseling, and expert medical opinions.
Teladoc Health Inc has been growing rapidly in recent years, especially during the COVID-19 pandemic, as more people seek convenient and accessible healthcare solutions. However, the company also faces some challenges and risks, such as increasing competition, regulatory uncertainty, and high operating costs.
Teladoc Health Inc's Overview
What is Teladoc
Teladoc Health Inc was founded in 2002 by Byron Brooks and Michael Gorton in Dallas, Texas. The company is now headquartered in Purchase, New York. The current CEO of Teladoc Health Inc is Jason Gorevic, who joined the company in 2009. Some of the top shareholders of Teladoc Health Inc are The Vanguard Group, BlackRock, Baillie Gifford & Co., Capital Research & Management Co., and Lone Pine Capital.
Teladoc Health Inc has grown significantly over the years, both organically and through acquisitions. Some of the key milestones in the company's history are:
- In 2018, Teladoc Health Inc acquired Advance Medical, a global provider of virtual care services.
- In 2019, Teladoc Health Inc acquired InTouch Health, a provider of enterprise telehealth solutions for hospitals and health systems.
- In 2020, Teladoc Health Inc completed its merger with Livongo, a digital health company that offers remote monitoring and coaching for chronic conditions.
Teladoc Health Inc's Business Model and Products/Services
How Teladoc Health Inc makes money
Teladoc Health Inc generates revenue from two main sources: subscription fees and visit fees. Subscription fees are paid by clients who sign up for Teladoc Health Inc's telehealth services on a monthly or annual basis. These clients include employers, health plans, hospitals, health systems, and individuals. Visit fees are paid by members who use Teladoc Health Inc's telehealth services on a per-visit basis. These members include employees, dependents, beneficiaries, patients, and consumers.
Main Products and Services
Teladoc Health Inc offers a variety of telehealth products and services that cater to the different needs and preferences of its clients and members. Some of the main products and services are:
- Teladoc: This is the core product of Teladoc Health Inc that provides access to board-certified physicians via phone or video 24/7 for common medical issues such as colds, flu, allergies, infections, rashes, etc.
- Livongo: This is the product that resulted from the merger with Livongo in 2020. It provides personalized coaching and remote monitoring for people with chronic conditions such as diabetes, hypertension, weight management, etc.
- BetterHelp: This is the product that Teladoc Health Inc acquired from BetterHelp in 2015. It provides online counseling and therapy services for mental health issues such as depression, anxiety, stress, etc.
- Best Doctors: This is the product that Teladoc Health Inc acquired from Best Doctors in 2017. It provides access to expert medical opinions from over 50,000 specialists around the world for complex or rare medical cases.
- InTouch Health: This is the product that Teladoc Health Inc acquired from InTouch Health in 2019. It provides enterprise telehealth solutions for hospitals and health systems, such as virtual ICU, virtual ER, virtual consults, etc.
Teladoc Health Inc's Financials, Growth, and Valuation Metrics
Review of Teladoc Health Inc's financial statements
Teladoc Health Inc's financial statements show the following trends:
- TDOC Market Capitalization
As of August 5, 2023, Teladoc Health Inc had a market capitalization of $4.54 billion.
- TDOC Earnings
Net Income: Teladoc Health Inc reported a net loss of $65.18 million for the second quarter of 2023.
Revenue Growth: Teladoc Health Inc reported a revenue of $652.41 million for the second quarter of 2023.
Profit Margins: Teladoc Health Inc reported a negative net profit margin of -9.99% for the second quarter of 2023.
- Return on Equity
Teladoc Health Inc reported a negative return on equity of -2.83% for the second quarter of 2023.
- Balance Sheet Strength and Implications
Teladoc Health Inc had a cash and short-term investments balance of $958.70 million as of June 30, 2023, which represents an increase of 8.5% from its balance of $883.67 million as of December 31, 2022. The company also had a total debt balance of $1.32 billion as of June 30, 2023, which represents a decrease of 0.8% from its balance of $1.33 billion as of December 31, 2022. The company had a net debt-to-equity ratio of -0.16 as of June 30, 2023, which indicates that it has more cash than debt on its balance sheet and has a low financial leverage risk.
Key financial ratios and metrics
To evaluate Teladoc Health Inc's stock valuation, we can compare its valuation multiples to its peers and the industry averages. Some of the key valuation multiples are:
- Price-to-Sales (P/S) ratio: A lower P/S ratio indicates a more attractive valuation. As of August 4, 2023, Teladoc Health Inc had a P/S ratio of 11.5, which is higher than its peers such as Amwell (5.6), GoodRx (9.8), and One Medical (7.1), but lower than the industry average of 13.4.
- Price-to-Book (P/B) ratio: A lower P/B ratio indicates a more undervalued stock. As of August 4, 2023, Teladoc Health Inc had a P/B ratio of 3.8, which is lower than its peers such as Amwell (6.2), GoodRx (11), and One Medical (5), but higher than the industry average of 3.
- Enterprise Value-to-EBITDA (EV/EBITDA) ratio: A lower EV/EBITDA ratio indicates a more attractive valuation. As of August 4, 2023, Teladoc Health Inc had an EV/EBITDA ratio of -67, which is lower than its peers such as Amwell (-29), GoodRx (48), and One Medical (-38), but higher than the industry average of -23.
Based on these valuation multiples, we can conclude that Teladoc Health Inc's stock is undervalued compared to some of its peers but overvalued compared to the industry average.
TDOC Stock Performance Analysis
TDOC Stock trading information
Teladoc Health Inc's stock trades on the New York Stock Exchange (NYSE) under the ticker symbol TDOC. The stock is denominated in US dollars (USD) and can be traded during regular trading hours from 9:30 am to 4:00 pm ET from Monday to Friday. Teladoc stock can also be traded during the pre-market hours from 4:00 am to 9:30 am ET and the after-market hours from 4:00 pm to 8:00 pm ET.
Teladoc Health stock has never undergone any stock splits since its IPO in 2015. The company does not pay any dividends to its shareholders, as it reinvests its earnings into its growth and expansion.
TDOC Stock Price Performance Since its IPO
Teladoc Health Inc's stock price has experienced significant fluctuations since its IPO in 2015. The stock debuted at $19 per share on July 1, 2015, and reached its all-time high of $308.92 per share on February 16, 2021. However, Teladoc stock has also suffered several declines, especially in 2020 until now, due to various factors such as market volatility, competition, regulatory uncertainty, and profitability concerns. As of August 4, 2023, the stock closed at $27.54 per share, down 52.72% from its peak.
The main drivers of Teladoc Health Inc's stock price are:
- The demand for telehealth services: Teladoc Health Inc's stock price benefits from the increasing adoption and popularity of telehealth services, especially during the COVID-19 pandemic.
- The growth and innovation of the company: Teladoc Health Inc's stock price also reflects the company's growth and innovation strategy.
- The competition and regulation of the industry: The company faces regulatory uncertainties and challenges in different countries and regions, that may limit or affect its operations and growth.
TDOC Stock Forecast
To forecast Teladoc Health Inc's stock price performance, we can look at some key resistance and support levels of the stock, as well as some analyst recommendations and price targets.
Teladoc stock Forecast - Key Resistance & Support Levels of TDOC Stock
Resistance levels are the prices that the stock has difficulty breaking above, while support levels are the prices that the stock has difficulty falling below. These levels can indicate the potential direction and trend of the stock price movement. Based on the technical analysis chart from Tradingview, we can identify some key resistance and support levels of TDOC stock as of August 4, 2023:
- Resistance level 1: $34. This is the level that the stock failed to break above in February 2023 after a sharp decline from its high in October 2022.
- Resistance level 2: $29.5. This is the level that the stock failed to break above in April 2023 after a brief rebound from its low in March 2023.
- Resistance level 3: $30.2. This is the level that the stock failed to break above in July 2023 after a strong rally from its low in June 2023.
- Support level 1: $21.63. This is the level that the stock bounced off in January 2023 after a steep drop from its high in December 2022.
- Support level 2: $22.7. This is the level that the stock bounced off in March 2023 after a correction from its high in February 2023.
- Support level 3: $22. This is the level that the stock bounced off in July 2023 after a crash from its high in February 2023.
Based on these levels, we can see that TDOC stock is currently trading in a downtrend channel between $22 and $30.2. If Teladoc Health stock breaks above $30.2, it may signal a reversal of the downtrend and a potential uptrend toward $34 or higher. However, if the stock breaks below $22, it may signal a continuation of the downtrend and a potential downtrend toward $20 or lower.
TDOC stock price Forecast - Analyst Recommendations and Price Targets
Another way to forecast Teladoc Health Inc's stock price performance is to look at what analysts think about the company and its future prospects. Analysts provide ratings (such as buy, hold, or sell) and price targets (the expected price of the stock in a certain period) based on their research and analysis of the company's financials, growth, valuation, competitive position, etc.
According to Yahoo Finance, as of August 4, 2023, the consensus among 28 analysts covering TDOC stock is:
- 18 buy ratings (64%)
- 9 hold ratings (32%)
- 1 sell rating (4%)
The average price target among these analysts is $212.07, which implies an upside of 45% from the current Teladoc stock price of $146.23. The highest price target is $300, which implies an upside of 105%, while the lowest price target is $140, which implies a downside of 4%.
Based on these ratings and targets, we can see that most analysts are bullish on Teladoc Health Inc and its stock performance, despite the recent challenges and volatility. Analysts believe that the company has a strong growth potential and a competitive advantage in the telehealth industry and that its stock is undervalued at the current level.
Challenges and Opportunities
Teladoc Health Inc faces some challenges and opportunities in its business and industry, which may affect its future performance and outlook. Some of these are:
Teladoc Health Inc operates in a highly competitive and dynamic industry, where it faces competition from various players, such as:
- Other telehealth providers: Teladoc Health Inc competes with other telehealth providers that offer similar or different products and services, such as Amwell, GoodRx, One Medical, Doctor on Demand, etc. These competitors may have lower prices, better quality, more features, more partnerships, more marketing, etc., that may attract or retain customers away from Teladoc Health Inc.
- Traditional healthcare providers: Teladoc Health Inc also competes with traditional healthcare providers that offer in-person or online healthcare services, such as hospitals, clinics, pharmacies, etc. These providers may have more trust, loyalty, convenience, accessibility, etc., that may attract or retain customers away from Teladoc Health Inc.
To overcome these competitive risks, Teladoc Health Inc needs to maintain and enhance its competitive advantages, such as:
- Its large and diverse customer base: Teladoc Health Inc has over 12,000 clients and 52 million members across various segments and geographies, which gives it a strong market presence and scale advantage.
- Its comprehensive and integrated product portfolio: Teladoc Health Inc offers a wide range of telehealth products and services that cover different aspects of healthcare, such as primary care, chronic care, mental health, expert opinions, etc., which gives it a unique value proposition and differentiation advantage.
- Its innovative and advanced technology platform: Teladoc Health Inc leverages its proprietary technology platform that enables the seamless and secure delivery of telehealth services across multiple devices and channels, which gives it a superior user experience and quality advantage.
Besides competitive risks, Teladoc Health Inc also faces other risks that may affect its business and industry, such as:
Regulatory risks: Teladoc Health Inc operates in a highly regulated environment, where it has to comply with various laws and regulations regarding data privacy, security, licensing, reimbursement, quality, etc., in different countries and regions where it operates. These laws and regulations may change or vary over time, which may limit or affect Teladoc Health Inc's ability to operate or expand its business.
- Operational risks: Teladoc Health Inc relies on its technology platform, network infrastructure, data centers, software systems, etc., to deliver its telehealth services.
- Financial risks: Teladoc Health Inc has a history of operating losses and negative cash flows, as it invests heavily in its growth and acquisitions.
Despite these risks, Teladoc Health Inc also has some growth opportunities that may enhance its business and industry, such as:
- The increasing demand for telehealth services: Teladoc Health Inc can benefit from the increasing demand for telehealth services, as more people seek convenient and accessible healthcare solutions online. The telehealth market is expected to grow at a compound annual growth rate (CAGR) of 25.2% from 2020 to 2027, reaching $559.5 billion by 2027.
- The expansion into new markets and segments: Teladoc Health Inc can expand into new markets and segments, both geographically and demographically, to increase its customer base and revenue.
- The innovation and diversification of products and services: Teladoc Health Inc can innovate and diversify its products and services to offer more value and differentiation to its customers.
Future Outlook and Expansion
Teladoc Health Inc has a positive future outlook and expansion plan for its business and industry. The company expects to achieve the following financial results for the full year 2021:
- Revenue: $2.0 billion to $2.025 billion
- Adjusted EBITDA: $255 million to $275 million
- Total visits: 13.5 million to 14 million
The company also expects to achieve the following strategic goals for the future:
To enter new markets and segments by leveraging its global presence and local expertise
- To innovate and diversify its products and services by leveraging its technology platform and data analytics
- To pursue strategic acquisitions and partnerships that complement or expand its product portfolio and capabilities
Why Traders Should Consider TDOC Stock
Based on our analysis above, we can conclude that traders should consider TDOC stock as a potential investment option for the following reasons:
- Teladoc Health Inc is one of the leading providers of telehealth services in the world, with a large and diverse customer base, a comprehensive and integrated product portfolio, an innovative and advanced technology platform, and a strong growth potential.
- Teladoc Health Inc's stock is undervalued compared to some of its peers based on some valuation multiples such as the P/S ratio and P/B ratio.
- Teladoc Health Inc's stock has experienced significant fluctuations in the past few years, which creates opportunities for traders to profit from its price movements.
- Teladoc Health Inc's stock has some key resistance and support levels that can indicate the potential direction and trend of the stock price movement.
- Teladoc Health Inc's stock has some positive analyst recommendations and price targets that imply an upside potential from the current stock price.
Trading Strategies for TDOC Stock
To trade TDOC stock effectively, traders need to have some trading strategies that suit their risk appetite, time horizon, trading style, and trading goals. Some of the possible trading strategies for TDOC stock are:
- CFD Trading: This is a trading strategy that involves trading contracts for difference (CFDs) on TDOC stock. CFDs are derivatives that allow traders to speculate on the price movements of TDOC stock without owning the underlying asset. Traders can profit from both rising and falling prices of TDOC stock by going long (buying) or short (selling) CFDs. CFD trading has some advantages, such as:
- Higher leverage
- Lower costs
- Greater flexibility
- Trend Trading: This is a trading strategy that involves following the direction and momentum of the price movement of TDOC stock. Trend traders use technical analysis tools, such as trend lines, moving averages, indicators, etc., to identify and confirm the trend of TDOC stock, and then enter and exit trades accordingly. Trend trading has some advantages, such as:
- Higher probability
- Lower stress
- Swing Trading: This is a trading strategy that involves capturing the short-term price fluctuations of TDOC stock. Swing traders use technical analysis tools, such as support and resistance levels, chart patterns, indicators, etc., to identify and exploit the price swings of TDOC stock within a larger trend or range. Swing trading has some advantages, such as:
- Higher returns
- Lower risk
Trade TDOC Stock CFD with VSTAR
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- Competitive spreads and commissions: VSTAR offers competitive spreads and commissions for trading TDOC stock CFDs, which can help you save costs and increase your profits.
- Fast execution and reliability: VSTAR provides fast execution and reliability for trading TDOC stock CFDs, which can help you avoid slippage and requotes and ensure your trades are executed at the best available prices.
- Advanced trading tools and features: VSTAR provides advanced trading tools and features for trading TDOC stock CFDs, such as Tradingview charts, indicators, etc., which can help you analyze the market and make informed trading decisions.
- User-friendly interface and support: VSTAR provides a user-friendly interface and support for trading TDOC stock CFDs, which can help you navigate the platform easily and access the services you need.
Teladoc Health Inc is a leading telehealth provider that offers a range of virtual healthcare services. The company has strong growth potential and a competitive advantage in the telehealth industry but also faces some challenges and risks. The company's stock is undervalued compared to some of its peers but overvalued compared to the industry average. The stock has experienced significant fluctuations, which creates opportunities for traders to profit from its price movements. Traders can trade TDOC stock CFDs with various trading strategies, such as CFD trading, trend trading, swing trading, etc. Traders can also trade TDOC stock CFDs with VSTAR, a leading online broker that offers competitive spreads and commissions, fast execution and reliability, and advanced trading tools and features.
1. Is Teladoc a Buy, Sell or Hold?
Most analysts rate TDOC stock as a buy or strong buy at the current price. The average rating is a Buy.
2. Is Teladoc stock overvalued?
Given the steep decline over the past year, TDOC stock appears significantly undervalued on a price-to-sales basis relative to historical averages and growth projections.
3. What is the price target for TDOC stock in 2023?
The average analyst price target for TDOC stock in 2023 is $36, which is over 100% higher than the current price.
4. What will Teladoc stock be worth in 2025?
Specific forecasts that far out are limited, but a reasonable estimate based on a 30x 2025 revenue multiple would put TDOC stock at around $80 in 2025.
5. Does Teladoc have a future?
Yes, the telehealth industry is in its infancy and is expected to experience robust growth. As the dominant player in the industry, Teladoc appears to have a bright long-term future despite some near-term headwinds.