AMWLAmerican Well Corporation (AMWL) presents a mixed investment profile. While it operates in a growing market (telehealth), its financial performance, particularly profitability and cash flow, remains a significant concern. Technical indicators show some positive momentum, but fundamental weaknesses necessitate a cautious approach.
The demand for hybrid care and telehealth solutions is a strong secular trend, driven by convenience, cost-effectiveness, and technological advancements. AMWL is positioned within this growth sector.
AMWL's financials show persistent unprofitability and negative free cash flow, despite revenue growth. The balance sheet is manageable but heavily reliant on cash reserves, which have been declining. Valuation metrics are currently unfavorable given the lack of profitability.
The stock has shown some positive short-term momentum, trading above key moving averages. However, indicators like RSI suggest it's approaching neutral territory after recent gains, implying potential for consolidation.
| Factor | Score |
|---|---|
| Digital Health Adoption | 85 |
| Healthcare Access & Affordability | 80 |
| Technological Innovation in Care Delivery | 70 |
| Regulatory Landscape | 65 |
| Competitive Environment | 70 |
| Factor | Score |
|---|---|
| Valuation | 40 |
| Profitability | 10 |
| Growth | 30 |
| Balance Sheet Health | 50 |
| Cash Flow | 20 |
| Factor | Score |
|---|---|
| Trend Analysis | 65 |
| Momentum | 60 |
| Volume Confirmation | 55 |
| Support & Resistance | 60 |
Strong Cash Position
The company maintains a significant cash and cash equivalents balance of $228.32 million as of Q4 2024, indicating a solid ability to fund operations and investments. [19, 22]
Attractive Price-to-Sales Ratio
The Price-to-Sales (P/S) ratio of 0.48 is below 1, suggesting the company may be undervalued relative to its sales, especially for a growth-oriented technology company. [6, 24]
Consistent Net Losses
American Well has consistently reported net losses, with a net income of -$208.14 million in 2024, indicating ongoing profitability challenges. [5, 23]
Negative Profit Margins
The company exhibits negative net profit margin (-59.14%) and operating margin (-60.08%), suggesting that costs are significantly outweighing revenues. [6]
August 2025
6
Next Earnings Date
H: $-1.07
A: $-1.11
L: $-1.15
H: 65.60M
A: 63.93M
L: 62.00M
American Well Corporation, an enterprise platform and software company, delivers digitally enabling hybrid care in the United States and internationally. The company offers Converge, a cloud-based platform that enables health providers, payers, and innovators to provide in-person, virtual and automated care; and delivers virtual primary care, post-discharge follow-up, chronic condition management, virtual nursing, e-sitting, on-demand and scheduled virtual visits, specialty consults, automated care, and behavioral health, as well as offers specialty care programs, including dermatology, musculoskeletal care, second opinion, and cardiometabolic care for patients and members. It also provides Carepoint devices, which transforms proprietary carts, peripherals, tablets, and TVs into digital access points in clinical settings. In addition, the company offers Amwell Medical Group network services consisting of primary and urgent care, behavioral health therapy, lactation counseling, and nutrition services. Further, it provides professional services to facilitate implementation, workflow design, systems integration, and service expansion for its products, as well as patient and provider engagement services. The company sells its products through field sales professionals, channel partners, and value-added resellers. It serves providers, payers, and the government, as well as the higher education sector. American Well Corporation was incorporated in 2006 and is headquartered in Boston, Massachusetts.
10.33 USD
The 39 analysts offering 1 year price forecasts for AMWL have a max estimate of 15.00 and a min estimate of 7.50.