TDOC

Teladoc Health Inc

Healthcare, TMT


Presented:11/02/2020
Price:$190.40
Cap:$16.06B
Current Price:$9.51
Cap:$1.63B

Presented

Date11/02/2020
Price$190.40
Market Cap$16.06B
Ent Value$18.15B
P/E RatioN/A
Book Value$26.45
Div Yield0%
Shares O/S84.36M
Ave Daily Vol3,941,182
Short Int19.79%

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: American Well Corp (AMWL), Cigna Corp (CI), GoodRx Holdings Inc (GDRX), Option Care Health Inc (OPCH), Teladoc Health Inc (TDOC), Twilio Inc (TWLO), Zoom Video Communications Inc (ZM). 

Highlights

The presenter is long shares of Teladoc Health Inc (TDOC), a multinational telemedicine and virtual healthcare company. Following its recent $18.5B acquisition of Livongo, he is bullish on the combined company's outlook. The stock is currently trading at ~$186 per share (16x revenue), but the presenter believes it should be trading closer to a SaaS multiple (~25x). As the company capitalizes on increasing virtual care adoption and the shift to value-based care models, he sees upside to revenues (growing at 30-40% CAGR), and models a 10% discount to the SaaS peer group average to account for uncertainty around the integration, reaching a price target of ~$285 per share in the next 12 months. 

Livongo, a SaaS, technology-driven diabetes/chronic care management company, leads in the remote patient monitoring space. It has the most comprehensive and diverse offering in the market, including chronic care management of diabetes, pre-diabetes, high blood pressure, and mental and behavioral health. As a result, Livongo/TDOC has an enormous opportunity to penetrate a large unsaturated end market. 

He highlights specific factors that make Livongo an attractive acquisition and growth driver for TDOC:

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Idea Discussion

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