Ehealth Intrinsic Value Calculation – EHEALTH Reports 32.5% Year-Over-Year Increase in Total Revenue for Q2 FY2023
August 10, 2023
☀️Earnings Overview
For the second quarter of FY2023, ending June 30 2023, EHEALTH ($NASDAQ:EHTH) reported that total revenue had increased by 32.5% compared to the same period in the previous year, reaching USD 66.8 million. However, the company’s net income declined to -23.5 million, a further deterioration from the -37.5 million reported in the same quarter of the previous year.
Analysis – Ehealth Intrinsic Value Calculation
GoodWhale performed an analysis of EHEALTH‘s fundamentals and found that the intrinsic value of an EHEALTH share is approximately $23.9. This was calculated using GoodWhale’s proprietary Valuation Line. At present, EHEALTH stock is trading at $8.9, which is a huge discount of 62.8%. This implies that EHEALTH stock is currently undervalued. Therefore, investors who purchase EHEALTH at its current price may be able to benefit from potential upside once the company is better understood by the market and the stock returns to its intrinsic value. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Ehealth. EHEALTH_Reports_32.5_Year-Over-Year_Increase_in_Total_Revenue_for_Q2_FY2023″>More…
| Total Revenues | Net Income | Net Margin |
| 390.19 | -95.39 | -12.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Ehealth. EHEALTH_Reports_32.5_Year-Over-Year_Increase_in_Total_Revenue_for_Q2_FY2023″>More…
| Operations | Investing | Financing |
| 3.16 | -43.18 | -1.27 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Ehealth. EHEALTH_Reports_32.5_Year-Over-Year_Increase_in_Total_Revenue_for_Q2_FY2023″>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.05k | 172.53 | 31.79 |
Key Ratios Snapshot
Some of the financial key ratios for Ehealth are shown below. EHEALTH_Reports_32.5_Year-Over-Year_Increase_in_Total_Revenue_for_Q2_FY2023″>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -11.7% | -51.4% | -13.6% |
| FCF Margin | ROE | ROA |
| -2.1% | -3.7% | -3.2% |
Peers
The company offers a wide variety of health insurance plans, including private, public, and government-sponsored health insurance plans, as well as dental, vision, and life insurance plans. eHealth serves more than 4 million customers in all 50 states. eHealth is competing against SelectQuote, Novus Acquisition & Development, and GoHealth in the online health insurance marketplace. These companies are all similar to eHealth in that they offer a variety of health insurance plans from different insurers.
However, eHealth has a few key advantages over its competitors. First, eHealth has been in business for over 20 years and has a strong brand recognition. Second, eHealth is the only company that is publicly traded on the stock market, which gives it access to capital to invest in new technology and products. Third, eHealth has a large customer base and a significant market share in the online health insurance marketplace.
– SelectQuote Inc ($NYSE:SLQT)
Return on equity (ROE) is a measure of financial performance calculated by dividing net income by shareholders’ equity. Market capitalization is a measure of the value of a company’s shares outstanding. It is calculated by multiplying the number of shares outstanding by the price per share.
SelectQuote Inc. is a publicly traded company that provides life insurance and other insurance products through its subsidiaries. The company was founded in 1985 and is headquartered in Kansas City, Missouri. SelectQuote Inc. has a market capitalization of $103.14 million and a return on equity of -48.75%. The company’s products are offered through its website,selectquote.com, and its subsidiaries include SelectQuote Insurance Services, Inc., SelectQuote Life Insurance Company, and SelectQuote Senior Insurance Services, Inc.
– Novus Acquisition & Development Corp ($OTCPK:NDEV)
GoHealth Inc has a market cap of 52.96M as of 2022, a Return on Equity of -105.56%. The company is a health insurance marketplace that offers a wide range of health insurance plans from different carriers.
Summary
EHealth, Inc. (EHTH) reported its second quarter of FY2023 financials recently. Total revenue increased by 32.5% year-on-year to USD 66.8 million, but the company’s net income came in at a reported USD -23.5 million. This is an improvement from the -37.5 million reported for the same period in the previous year, but still signals cause for caution when considering investing in EHealth. Investors will be hoping for signs of improvement in upcoming financials so that the company can begin to turn a profit and increase the value of the stock.
