Teladoc Health Inc. (TDOC, Financial) is experiencing a significant stock price decline today, with shares falling by 11.69%. This comes in the wake of their recently reported fourth-quarter earnings, which presented a mix of better-than-anticipated revenues but larger-than-expected losses per share.
The company's Q4 earnings reveal a revenue of $640.49 million, which is a 3% decline from the previous year. The loss per share was reported at $0.28, exceeding analyst expectations of a $0.22 loss per share. Despite a 5% increase in the integrated care customer count, the average revenue per user fell by 2%, raising investor concerns regarding Teladoc's pricing power and profitability.
Looking forward, Teladoc projects its annual revenues to be between $2.468 billion and $2.576 billion. This forecast indicates a potential 1.9% revenue decline compared to last year's approximate $2.57 billion. However, the company's expected annual loss per share, ranging between $0.50 and $1.10, would reflect a substantial improvement over the previous year's loss of $5.87 per share.
From a stock analysis perspective, Teladoc's current price is at $9.705, leading to a market capitalization of $1.67 billion. The company's price-to-book (P/B) ratio is 1.11, which suggests that the stock might still be trading relatively close to its book value despite the decline. The stock currently has a poor GF Value rating, classified as a possible value trap, indicating that investors should exercise caution.
Teladoc's financial health shows areas of concern, with a distressingly low Altman Z-Score of -5.77, suggesting potential financial distress. Furthermore, Teladoc's free cash flow yield stands at 10.15%, a point for consideration regarding its ability to generate cash relative to its market value. However, the company's Beneish M-Score indicates that it is unlikely to be an accounting manipulator, and its operating margins show signs of expansion, which is generally positive.
Despite the company's efforts in improving its financial condition, the multiple warning signs, including significant insider selling and declining revenue per share over the past 12 months, contribute to the market's cautious outlook on TDOC. Investors are advised to closely monitor Teladoc's upcoming performance and strategic moves in this evolving healthcare space.
