Yahoo Finance Sharecare, Inc. (NASDAQ:SHCR) Is Expected To Breakeven In The Near Future
We feel now is a pretty good time to analyse Sharecare, Inc.'s (NASDAQ:SHCR) business as it appears the company may be on the cusp of a considerable accomplishment. Sharecare, Inc. operates as a digital healthcare platform company. With the latest financial year loss of US$40m and a trailing-twelve-month loss of US$41m, the US$2.7b market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is Sharecare's path to profitability – when will it 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
Consensus from 2 of the American Healthcare Services analysts is that Sharecare is on the verge of breakeven. They expect the company to post a final loss in 2022, before turning a profit of US$32m in 2023. The company is therefore projected to breakeven around 2 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 85% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Underlying developments driving Sharecare's growth isn’t the focus of this broad overview, however, bear in mind that generally healthcare tech companies, depending on the stage of product development, have irregular periods of cash flow. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.
Before we wrap up, there’s one issue worth mentioning. Sharecare currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. Oftentimes, losses exist only on paper but other times, it can be a red flag.
Next Steps:
There are too many aspects of Sharecare to cover in one brief article, but the key fundamentals for the company can all be found in one place – Sharecare's company page on Simply Wall St. We've also compiled a list of relevant aspects you should further research:
Valuation: What is Sharecare 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 Sharecare 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 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.
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.
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