Yahoo Finance When Will Oneview Healthcare PLC (ASX:ONE) Become Profitable?
With the business potentially at an important milestone, we thought we'd take a closer look at Oneview Healthcare PLC's (ASX:ONE) future prospects. 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$194m market-cap company posted a loss of €8.9m for its most recent financial year. The most pressing concern for investors is Oneview Healthcare'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.
Check out our latest analysis for Oneview Healthcare
According to some industry analysts covering Oneview Healthcare, breakeven is near. They anticipate the company to incur a final loss in 2025, before generating positive profits of €1.8m in 2026. Therefore, the company is expected to breakeven roughly 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 75% is expected, which signals high confidence from analysts. 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 Oneview Healthcare's upcoming projects, though, bear in mind 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 rare for a loss-making 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 essential factors you should further examine:
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.
