Ehealth Stock Fair Value – Ruffer LLP Reduces Stake in eHealth by 91.1%, Impacting Investors on May 22, 2023.
May 24, 2023
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EHEALTH ($NASDAQ:EHTH): On May 22, 2023, news surfaced that Ruffer LLP had drastically decreased its ownership in eHealth Inc. to only 8.9% during the fourth quarter of the year. This decision comes as a surprise for many investors, as it could potentially have an immense impact on the company’s stock performance. eHealth Inc. is an online health insurance agency headquartered in California, USA. It also provides technology-enabled services and products to promote health coverage and facilitate the sale of health insurance. With Ruffer LLP’s decision to reduce its stake in eHealth Inc., investors are left wondering what this will mean for their investments. The company’s share price could potentially decline due to the decreased confidence in the company, or it could remain steady as investors take a wait-and-see approach.
Additionally, there is a possibility that this decision will have an overall positive effect on the company’s growth prospects, as it could open up new opportunities for investors to buy in at a lower price. It remains to be seen how this decision by Ruffer LLP will play out in the long-term, and whether or not investors will suffer any losses or benefit from the sudden change in ownership. Regardless, it is certain that investors in eHealth Inc. should proceed with caution and keep a close eye on any new developments which may arise from this announcement.
Analysis – Ehealth Stock Fair Value
We at GoodWhale recently conducted an analysis of EHEALTH‘s wellbeing. Our proprietary Valuation Line has calculated the intrinsic value of EHEALTH’s share to be around $28.0. This implies that the stock is currently undervalued and presents an attractive opportunity for investors. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Ehealth. More…
| Total Revenues | Net Income | Net Margin |
| 373.83 | -107.5 | -16.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Ehealth. More…
| Operations | Investing | Financing |
| -13.18 | -24.5 | -1.97 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Ehealth. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.08k | 183.67 | 32.46 |
Key Ratios Snapshot
Some of the financial key ratios for Ehealth are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -11.7% | -51.4% | -19.0% |
| FCF Margin | ROE | ROA |
| -7.1% | -4.9% | -4.1% |
Peers
The company offers a wide variety of health insurance plans, including private, public, and government-sponsored health insurance plans, as well as dental, vision, and life insurance plans. eHealth serves more than 4 million customers in all 50 states. eHealth is competing against SelectQuote, Novus Acquisition & Development, and GoHealth in the online health insurance marketplace. These companies are all similar to eHealth in that they offer a variety of health insurance plans from different insurers.
However, eHealth has a few key advantages over its competitors. First, eHealth has been in business for over 20 years and has a strong brand recognition. Second, eHealth is the only company that is publicly traded on the stock market, which gives it access to capital to invest in new technology and products. Third, eHealth has a large customer base and a significant market share in the online health insurance marketplace.
– SelectQuote Inc ($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
An analysis of eHealth‘s financials, such as balance sheet, income statement, and cash flow statement, is essential for determining the company’s potential return. Furthermore, investors should evaluate how the company’s competitive landscape has changed and what other risks it may be facing. Additionally, investors should compare eHealth’s performance against that of its peers to gauge potential returns on their investment. Despite the news, investors should conduct thorough research before making any decisions.
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