Teladoc Health, Inc. showing signs of recovery after significant decline, potential gains ahead.

From Yahoo Finance: 2025-06-23 11:07:00

Teladoc Health, Inc. shares were trading at $6.90 on June 20th. Despite a 97% decline from its peak, the company still generates $2.6 billion in revenue and is turning free cash flow positive. The downfall was due to mismanagement, over-aggressive acquisitions, and a bloated valuation, including a $13 billion goodwill write-off from the Livongo merger.

Teladoc Health has two main segments: Integrated Care serving 92 million members and BetterHelp, a mental health platform with over 400,000 subscribers. While the company has high gross margins, it has struggled to achieve profitability due to amortization and strategic missteps. The recent CEO change to Chuck Divita brings hope for a turnaround with his cost-conscious approach.

Teladoc Health’s current valuation reflects market skepticism, trading at under 1x EV/Sales and 6x free cash flow. The new CEO’s strategy is awaited, but there is potential for significant gains if the execution improves. The company is on the author’s watchlist as a fallen angel with the possibility of recovery and market sentiment shift towards overlooked tech names like Teladoc.

A previous bullish thesis on Teladoc Health highlighted the contrasting performance of its segments. Integrated Care is growing steadily, while BetterHelp’s decline has been dragging down overall results. The stock has depreciated approximately 27% since coverage, mainly due to BetterHelp’s struggles. However, Integrated Care remains resilient, showing potential for improved profitability that may outweigh BetterHelp’s impact. Waldhauser shares a similar view on the turnaround potential under new leadership and the company’s undervalued fundamentals.



Read more at Yahoo Finance: Teladoc Health, Inc. (TDOC): A Bull Case Theory