Investing in beaten growth stocks allows you to get exposure to quality companies that act on a cheap superior. In this article I have identified one TOP TSX shares that has fallen 40% compared to its 52 weeks high, so that Canadian investors can buy the dip.
Valued on a market capitalization of $ 384 million, Halfwell AI (TSX: AIDX) is an artificial intelligence company focused on healthcare. It develops clinical decision support systems and AI-driven health care analyzes. Healwell operates in Canada, New Zealand, Australia and the United Kingdom and offers screening for chronic diseases, electronic health files, clinical research services and telehealth platforms to pharmaceutical companies, healthcare providers and hospitals via three business segments.
Is Healwell AI a good buy at the moment?
In Q1 2025, Healwell AI reported sales of $ 14.1 million, an increase of 208% on an annual basis. In addition to stellar top growth, the AI shares has insured the financing for the acquisition of Orion Health, which was closed in April.
The AI and Data Science Business from Healwell grew year after year 224% to $ 2.3 million in Q1. His two primary AI Subsidiaries, Pentavere Research and Khure Health, continued to expand their customer base with a combined total of 32 signed Master Service Agreements (MSAs) by the end of the quarter, an increase of 16 MSAs at the end of Q1 2024.
In addition, by the end of the quarter of March, Healwell identified around 50,800 risky patients, indicating progress in early disease detection.
The Orion Health Acquisition should transform Healwell into a really worldwide company with more than 70 important customers in 11 countries. Orion Health brings robust data infrastructure in health care, strong operational margins and solid free cash flow conversion, and adds around $ 100 million to the annual turnover of the top rule from Q2 2025.
The acquisition positions Healwell to integrate advanced AI technologies with the powerful health platforms of Orion, creating a uniform worldwide platform for improved patient results.
Healthcare Software Turnover achieved $ 5.7 million in Q1, a significant increase of $ 2 million in the previous year, driven by acquisitions of Verosource and other strategic additives. Clinical examination and patient services generated $ 6.1 million, an increase of 233% on an annual basis, mainly attributed to the Biopharma acquisition.
Healwell changed strategic leadership changes to support the next growth phase, with James Lee appointed CEO of July 1, while founder Dr. Alexander Dobanowski passes to President. The company also welcomed Sacha Gera as Chief Operating Officer and Brad Porter as Chief Commercial Officer, which strengthens the possibilities of the executive team for global expansion.
Is the AI shares undervalued?
With the efforts for the integration of Orion Health and cost optimization that make $ 3 million to annual savings, management expects Healwell to be adapted EBITDA (income before interest, tax, depreciation and amortization) achieved positive results for the full year 2025, which marks a bending point in the profitability process of the company.
In August 2025, Healwell AI trades nearly 70% below all time, making it attractive for value investors. Analysts who follow the Small-Cap TSX shares expect that his turnover will increase from $ 39 million in 2024 to $ 369 million in 2029.
Moreover, it is predicted that Healwell AI 2028 will end with a free cash flow of $ 28 million, compared to an outflow of $ 11 million in 2025. If the AI shares are priced on a reasonably multiple of 20 times ahead FCF, it could win more than 45% in the coming 30 months. Analysts remain bullish about Healwell shares and expect it to be more than triple, considering consensus price objectives.
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