Q: Can you please give me an updated opinion of WELL, thanks.
5i Research Answer:
WELL has mostly been trading flat over the past year, and sales and earnings expectations for FY2024 are expected to be strong. It trades at a reasonable valuation of 15.2X forward P/E, its debt levels are good, but it has been issuing shares. Its free cash flow has greatly improved from 2022, but has been stagnant over the past year. Its margins are thin, and we feel that a combination of thin margins and flat free cash flow is currently holding the price back. We would be comfortable holding here, and if earnings are better than expected in April, we feel its price can begin to see some expansion.