Yahoo Finance When Will Volpara Health Technologies Limited (ASX:VHT) Turn A Profit?
We feel now is a pretty good time to analyse Volpara Health Technologies Limited's (ASX:VHT) business as it appears the company may be on the cusp of a considerable accomplishment. Volpara Health Technologies Limited provides breast imaging analytics software products in New Zealand. On 31 March 2022, the AU$166m market-cap company posted a loss of NZ$16m for its most recent financial year. The most pressing concern for investors is Volpara Health Technologies' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Check out our latest analysis for Volpara Health Technologies
Volpara Health Technologies is bordering on breakeven, according to the 3 Australian Healthcare Services analysts. They expect the company to post a final loss in 2023, before turning a profit of NZ$1.8m 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 97% year-on-year, on average, 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.
We're not going to go through company-specific developments for Volpara Health Technologies given that this is a high-level summary, though, bear in mind that by and large a healthcare tech company has lumpy cash flows which are contingent on the product and stage of development the company is in. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.
One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 0.5% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.
Next Steps:
This article is not intended to be a comprehensive analysis on Volpara Health Technologies, so if you are interested in understanding the company at a deeper level, take a look at Volpara Health Technologies' company page on Simply Wall St. We've also put together a list of relevant aspects you should look at:
Valuation: What is Volpara Health Technologies 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 Volpara Health Technologies 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 Volpara Health Technologies’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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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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