When Can We Expect A Profit From Doctor Care Anywhere Group PLC (ASX:DOC)?

Doctor Care Anywhere Group PLC (ASX:DOC) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. 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$23m 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?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View 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 expect the company to post a final loss in 2024, before turning a profit of UK£5.5m in 2025. The company is therefore projected to breakeven just over a year from now. 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 96%, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of Doctor Care Anywhere Group's upcoming projects, 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 that a high growth rate is not unusual, especially if the company is currently in an investment period.

One thing we would like to bring into light with Doctor Care Anywhere Group is its debt-to-equity ratio of over 2x. Typically, debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

There are too many aspects of Doctor Care Anywhere Group to cover in one brief article, but the key fundamentals for the company can all be found in one place – Doctor Care Anywhere Group's company page on Simply Wall St. We've also put together a list of key factors you should look at:

1. 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.
2. 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.
3. 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.