0R15 7785.0 -1.5056% 0R1E 7720.0 0.9282% 0M69 None None% 0R2V 170.1 -2.3816% 0QYR 1361.5 -1.4834% 0QYP 392.02 -1.1299% 0LCV 137.1211 0.3815% 0RUK None None% 0RYA 1706.0 -2.6256% 0RIH 164.95 -1.4047% 0RIH 164.08 -0.5274% 0R1O 180.86 9906.0858% 0R1O None None% 0QFP None None% 0M2Z 298.95 0.302% 0VSO None None% 0R1I None None% 0QZI 436.0 0.6928% 0QZ0 220.0 0.0% 0NZF None None%
eHealth Inc
eHealth Inc (NASDAQ: EHTH) is a California, United States-based insurance Company, which provides an online marketplace of health insurance for individuals, families and small businesses.
On 18 February 2021, the Company will release its Q4 FY20 results.
Rationale for Valuation – Speculative Buy at USD 56.00
Key Risks
Recent News
On 29 January 2021, the Company announced that an affiliate of H.I.G. Capital has entered into a binding agreement through purchasing convertible preferred stock and make a USD 225 million investment in the Company.
Trading Update (as on 29 January 2021)
One Year Share Price Chart
(Source: Refinitiv, chart created by Kalkine Group)
Valuation Methodology: Price/Earnings Approach (NTM) (Illustrative)
Conclusion
In 2021, the approved Medicare members are expected to grow by the mid-20% range as compared to 2020, while Medicare Advantage lifetime values are also expected to increase. It also expects the positive impact of higher commission rates and the EHTH's retention initiatives. However, in FY21, the Company expects a decline in Residual or "tail" revenue in the EHTH's Medicare and Individual & Family Plan businesses and a decrease in acquisition costs as well as a considerable slow-down in fixed cost growth. In the first weeks of 2021, the Company saw positive enrolment trends. It delivered several new capabilities in 2020, with the long-term growth strategy. Meanwhile, Q3 FY20 results reflect strong momentum in online Medicare enrolments, significant growth in Medicare advertising revenue and investment in the telesales capacity in preparation for the AEP (Annual Enrolment Period). Therefore, it is confident for the long-term prospects and will build a strong foundation, which drives growth and create shareholder value. The stock made a 52-week low and high of USD 47.84 and USD 152.19, respectively.
Based on the decent growth prospects, and support from the valuation as done using the above method, we have given a “Speculative Buy” stance on eHealth Inc at the closing market price of USD 56.00 (as on 4 February 2021), with lower double-digit upside potential based on 17.73x Price/NTM Earnings (approx.) on FY21E earnings per share (approx.).
Document Security Systems Inc
Document Security Systems Inc (AMEX: DSS) is a developer and marketer of secure technologies. It is focused on blockchain security, brand protection technology, direct marketing, real estate, healthcare, and securitized digital assets.
Rationale for Valuation – Speculative Buy at USD 4.33
Key Risks
Recent News
On 4 February 2021, the Company announced the upsized public offering of common stock with USD 34.5 million expectations.
On 19 January 2021, the Company stated that Impact BioMedical, Inc. (Group’s wholly-owned subsidiary) entered into an investment and distribution agreement with Nano9 Labs, LLC, which expands nutraceutical product lines.
Q3 FY20 Trading Update (for the quarter ended 30 September 2020, as on 26 October 2020)
One Year Share Price Chart
(Source: Refinitiv, chart created by Kalkine Group)
Valuation Methodology: EV/Sales Approach (NTM) (Illustrative)
Conclusion
Q3 was a transformational quarter, with shareholder equity increasing nearly five-fold to USD 73.3 million and USD 1.20 per share in net income from continuing operations. After completing the acquisition of Impact BioMedical, the Company declared a special share dividend. Further, the Company added USD 9.9 million from two separate offerings, resulting in cash of USD 11.6 million and strengthening the balance sheet. Overall, the Board stays confident in DSS’s ability to emerge from such an unprecedented period and also sustainable for the long term. It also signed several contracts and launched the AGaaS app, which will continue to see improvements in the Company's top and bottom line. The stock made a 52-week low and high of USD 3.68 and USD 15.60, respectively.
Based on the decent growth prospects and support from the valuation as done using the above method, we have given a “Speculative Buy” recommendation on Document Security Systems Inc at the closing price of USD 4.33 (as on 4 February 2021), with lower-double digit upside potential based on 2.50x EV/NTM Sales (approx.) on FY21E Sales (approx.).
*All forecasted figures and Peer information have been taken from Refinitiv, Thomson Reuters.
Disclaimer
PLEASE BE ADVISED THAT YOUR CONTINUED USE OF THIS SITE OR THE INFORMATION PROVIDED HEREIN SHALL INDICATE YOUR CONSENT AND AGREEMENT TO THESE TERMS.
References to ‘Kalkine’, ‘we’, ‘our’ and ‘us’ refer to Kalkine Limited.
This website is a service of Kalkine Limited. Kalkine Limited is a private limited company, incorporated in England and Wales with registration number 07903332.
The article has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine is not responsible for material posted on this website and does not guarantee the content, accuracy, or use of the content in this site. No advice or information, whether oral or written, obtained by you from Kalkine or through or from the service shall create any warranty not expressly stated.
Kalkine do not offer financial advice based upon your personal financial situation or goals, and we shall NOT be held liable for any investment or trading losses you may incur by using the opinions expressed in our publications, market updates, news alerts and corporate profiles. Kalkine does not in any way endorse or recommend individuals, products or services that may be discussed on this site. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional licensed financial planner and adviser.