We assign a fundamental rating of 3 out of 10 to TDOC. TDOC was compared to 34 industry peers in the Health Care Technology industry. TDOC has a bad profitability rating. Also its financial health evaluation is rather negative. TDOC does not seem to be growing, but still is valued expensively.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

TDOC had negative earnings in the past year.
TDOC had a positive operating cash flow in the past year.
In the past 5 years TDOC always reported negative net income.
TDOC had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of -7.75%, TDOC is in line with its industry, outperforming 58.82% of the companies in the same industry.
TDOC's Return On Equity of -16.03% is fine compared to the rest of the industry. TDOC outperforms 64.71% of its industry peers.

		Industry Rank	Sector Rank
ROA	-7.75%
ROE	-16.03%
ROIC	N/A

ROA(3y)-115.95%

ROA(5y)-70.6%

ROE(3y)-222.82%

ROE(5y)-134.84%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

With a decent Gross Margin value of 69.80%, TDOC is doing good in the industry, outperforming 73.53% of the companies in the same industry.
In the last couple of years the Gross Margin of TDOC has remained more or less at the same level.
The Profit Margin and Operating Margin are not available for TDOC so they could not be analyzed.

		Industry Rank	Sector Rank
OM	N/A
PM (TTM)	N/A
GM	69.8%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y1.33%

GM growth 5Y1.2%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

TDOC does not have a ROIC to compare to the WACC, probably because it is not profitable.
TDOC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, TDOC has more shares outstanding
The debt/assets ratio for TDOC is higher compared to a year ago.

2.2 Solvency

Based on the Altman-Z score of -6.57, we must say that TDOC is in the distress zone and has some risk of bankruptcy.
TDOC's Altman-Z score of -6.57 is on the low side compared to the rest of the industry. TDOC is outperformed by 79.41% of its industry peers.
The Debt to FCF ratio of TDOC is 7.10, which is on the high side as it means it would take TDOC, 7.10 years of fcf income to pay off all of its debts.
TDOC has a Debt to FCF ratio of 7.10. This is comparable to the rest of the industry: TDOC outperforms 55.88% of its industry peers.
A Debt/Equity ratio of 0.71 indicates that TDOC is somewhat dependend on debt financing.
TDOC has a Debt to Equity ratio of 0.71. This is in the lower half of the industry: TDOC underperforms 79.41% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.71
Debt/FCF	7.1
Altman-Z	-6.57

ROIC/WACCN/A

WACC6.86%

2.3 Liquidity

TDOC has a Current Ratio of 2.70. This indicates that TDOC is financially healthy and has no problem in meeting its short term obligations.
TDOC has a Current ratio (2.70) which is comparable to the rest of the industry.
TDOC has a Quick Ratio of 2.60. This indicates that TDOC is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.60, TDOC is in line with its industry, outperforming 58.82% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	2.7
Quick Ratio	2.6

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The earnings per share for TDOC have decreased strongly by -13.27% in the last year.
The Revenue has decreased by -2.37% in the past year.
TDOC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 35.95% yearly.

EPS 1Y (TTM)-13.27%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-47.37%

Revenue 1Y (TTM)-2.37%

Revenue growth 3Y8.13%

Revenue growth 5Y35.95%

Sales Q2Q%-2.2%

3.2 Future

Based on estimates for the next years, TDOC will show a small growth in Earnings Per Share. The EPS will grow by 6.70% on average per year.
Based on estimates for the next years, TDOC will show a small growth in Revenue. The Revenue will grow by 1.86% on average per year.

EPS Next Y2.5%

EPS Next 2Y16.95%

EPS Next 3Y12.56%

EPS Next 5Y6.7%

Revenue Next Year-1.79%

Revenue Next 2Y-0.4%

Revenue Next 3Y0.38%

Revenue Next 5Y1.86%

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

TDOC reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for TDOC. No positive earnings are expected for the next year.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	N/A

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, TDOC is valued cheaply inside the industry as 91.18% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TDOC is valued cheaply inside the industry as 94.12% of the companies are valued more expensively.