TDOC

Teladoc Inc

Healthcare, TMT


Presented:11/26/2019
Price:$84.90
Cap:$6.15B
Current Price:$9.51
Cap:$1.63B

Presented

Date11/26/2019
Price$84.90
Market Cap$6.15B
Ent Value$4.86B
P/E RatioN/A
Book Value$13.73
Div Yield0%
Shares O/S72.38M
Ave Daily Vol1,346,674
Short Int36.00%

Current

Price$9.51
Market Cap$1.63B
Teladoc Health, Inc. engages in the provision of telehealthcare services using a technology platform via mobile devices, the Internet, video and phone. Its portfolio of services and solutions covers medical subspecialties from non-urgent, episodic needs like flu and upper respiratory infections, to chronic, complicated medical conditions like cancer and congestive heart failure. The company was founded on June 13, 2002 by George Byron Brooks and is headquartered in Purchase, NY.

Publicly traded companies mentioned herein: Teladoc Health Inc (TDOC)

Highlights

The presenter is short shares of Teladoc Health Inc (TDOC), which provides virtual healthcare services on a business-to-business basis in the US and internationally. The stock is currently trading at ~$84 per share (11.9x EV/Revenue) but he sees significant downside potential from slowing core business growth and what he analyzes as a flawed business model based on roll-ups of low-margin, mediocre businesses. The presenter thinks TDOC will suffer from low customer adoption rates and market share losses as competition increases.

TDOC’s original business model was solely subscription-based, selling subscriptions directly to payers and self-insured companies. Companies would pay an annual subscription per member to be covered. However, Teladoc’s service has created more headaches for users, who might end up paying for both a Teladoc consultation as well a visit to their regular doctor. Utilization has never been high and the service has failed to reduce costs. TDOC has since changed their business model and have added visit fees paid by members, yet the company remains unprofitable to date. 

The presenter believes TDOC’s core business is slowing, and that investors may be looking past this issue due to growth from a recent acquisition. 

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Idea Discussion

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