Teladoc Health's Mixed Performance Rates 40% in Guru Analysis

Teladoc Health Inc receives a 40% rating based on fundamental criteria from a report. The stock's low Price/Sales ratio is favorable, but failures in several key performance metrics highlight challenges ahead.

Date: 20-09-2024

AI Rating: 5

The report acknowledges Teladoc Health Inc's rating under the Price/Sales Investor model as a mixed performance, scoring 40%. The low Price/Sales ratio is a positive indicator, suggesting that the stock may be undervalued compared to sales generated. However, it highlights significant weaknesses in key financial metrics that are likely to concern potential investors.

The following insights focus on the areas affecting stock price:

Total Debt/Equity Ratio: Failing this test indicates that the company may have a high level of debt compared to equity, which could raise financing concerns and indicate potential liquidity risks for investors.
Long-Term EPS Growth Rate: With a fail here, it suggests that the company might not be generating sufficient earnings growth over the long term to satisfy growth-oriented investors.
Free Cash Per Share: This failure indicates potential difficulties in converting revenues into cash flow, impacting the company's ability to invest in opportunities or pay down debt.
Three Year Average Net Profit Margin: A failure in this area suggests that the company is struggling with profitability, which could deter potential investors looking for robust net income margins.

In conclusion, while the low Price/Sales ratio can be seen as a favorable characteristic, the failures in debt management, growth outlook, cash generation, and profitability form a concerning overall picture. Investors should closely monitor these factors as they could impact Teladoc's stock price moving forward.

Stocks: TDOC