Yahoo Finance Analysts Expect Breakeven For Sharecare, Inc. (NASDAQ:SHCR) Before Long
With the business potentially at an important milestone, we thought we'd take a closer look at Sharecare, Inc.'s (NASDAQ:SHCR) future prospects. Sharecare, Inc. operates as a digital healthcare platform company. The US$886m market-cap company announced a latest loss of US$85m on 31 December 2021 for its most recent financial year result. Many investors are wondering about the rate at which Sharecare will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
View our latest analysis for Sharecare
Sharecare is bordering on breakeven, according to the 3 American Healthcare Services analysts. They expect the company to post a final loss in 2022, before turning a profit of US$24m in 2023. So, the company is predicted to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow 140% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Given this is a high-level overview, we won’t go into details of Sharecare's upcoming projects, but, take into account that typically a healthcare tech company has lumpy cash flows which are contingent on the product and stage of development the company is in. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.
One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 0.07% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.
Next Steps:
There are key fundamentals of Sharecare which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Sharecare, take a look at Sharecare's company page on Simply Wall St. We've also compiled a list of relevant aspects you should further research:
Historical Track Record: What has Sharecare's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Sharecare's board and the CEO’s background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
