We feel now is a pretty good time to analyse Doctor Care Anywhere Group PLC's (ASX:DOC) business as it appears the company may be on the cusp of a considerable accomplishment. Doctor Care Anywhere Group PLC, together with its subsidiaries, provides digital healthcare and development services in the United Kingdom, Australia, and the Republic of Ireland. The AU$86m market-cap company announced a latest loss of UK£20m on 31 December 2021 for its most recent financial year result. The most pressing concern for investors is Doctor Care Anywhere Group's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
According to the 2 industry analysts covering Doctor Care Anywhere Group, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of UK£4.8m in 2024. The company is therefore projected to breakeven around 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 82% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Underlying developments driving Doctor Care Anywhere Group's growth isn’t the focus of this broad overview, but, take into account that by and large healthcare tech companies, depending on the stage of product development, have irregular periods of cash flow. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.
One thing we’d like to point out is that Doctor Care Anywhere Group has no debt on its balance sheet, which is rare for a loss-making healthcare tech company, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
This article is not intended to be a comprehensive analysis on Doctor Care Anywhere Group, so if you are interested in understanding the company at a deeper level, take a look at Doctor Care Anywhere Group's company page on Simply Wall St. We've also compiled a list of essential aspects you should look at:
Valuation: What is Doctor Care Anywhere Group worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Doctor Care Anywhere Group is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Doctor Care Anywhere Group’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.