Q: Hi 5i, Any info gleaned from listening in on their CC? As of writing this the market has taken WELL down 9%. Do see this as justified? Lastly, based on forward guidance can you provide key valuation metrics, like P/E and other stats you would look at.
Thx.
Thx.
5i Research Answer:
WELL ended the day down 5.8%. Considering the stock had already fallen on the pre-announcement of the problems at Circle, this seems a bit harsh to us, but certainly the results were 'messy'. If we look to F2026 earnings, the stock is at 11.5X earnings and 5X EBITDA. EPS is expected to triple this year (from a lower base due to the issues it has had). The call did not add much. WELL discussed the two accounting issues, but focused on patient visits (5.7M) and revenue growth (19%) and organic growth (32% in some divisions). WISP is still under a review and Circle will likely be sold. Considering the recent issues the call tone was fairly positive overall.