Yahoo Finance When Will Doctor Care Anywhere Group PLC (ASX:DOC) Turn A Profit?
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. On 31 December 2023, the AU$24m market-cap company posted a loss of UK£8.2m for its most recent financial year. Many investors are wondering about the rate at which Doctor Care Anywhere Group 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.
See our latest analysis for Doctor Care Anywhere Group
Expectations from some of the Australian Healthcare Services analysts is that Doctor Care Anywhere Group is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of UK£5.5m in 2025. Therefore, the company is expected 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 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 96% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, we won’t go into details of Doctor Care Anywhere Group's upcoming projects, though, bear in mind 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 that a high growth rate is not unusual, especially if the company is currently in an investment period.
Before we wrap up, there’s one issue worth mentioning. Doctor Care Anywhere Group currently has a debt-to-equity ratio of over 2x. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.
Next Steps:
There are key fundamentals of Doctor Care Anywhere Group 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 Doctor Care Anywhere Group, take a look at Doctor Care Anywhere Group's company page on Simply Wall St. We've also put together a list of essential factors you should further research:
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.
