Yahoo Finance When Can We Expect A Profit From Oneview Healthcare PLC (ASX:ONE)?
We feel now is a pretty good time to analyse Oneview Healthcare PLC's (ASX:ONE) business as it appears the company may be on the cusp of a considerable accomplishment. Oneview Healthcare PLC develops and sells software and related consultancy services for the healthcare sector in Ireland, the United States, Australia, Asia, and the Middle East. On 31 December 2023, the AU$276m market-cap company posted a loss of €8.9m for its most recent financial year. Many investors are wondering about the rate at which Oneview Healthcare will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Check out our latest analysis for Oneview Healthcare
Consensus from 2 of the Australian Healthcare Services analysts is that Oneview Healthcare is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of €1.7m in 2026. Therefore, the company is expected to breakeven roughly 2 years from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 74%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving Oneview Healthcare's growth isn’t the focus of this broad overview, though, 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, 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 aspect worth mentioning. Oneview Healthcare currently has no debt on its balance sheet, which is quite unusual for a cash-burning healthcare tech company, which usually has a high level of debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of Oneview Healthcare to cover in one brief article, but the key fundamentals for the company can all be found in one place – Oneview Healthcare's company page on Simply Wall St. We've also compiled a list of relevant factors you should look at:
Valuation: What is Oneview Healthcare 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 Oneview Healthcare 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 Oneview Healthcare’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.
