When Will MedAdvisor Limited (ASX:MDR) Breakeven?

With the business potentially at an important milestone, we thought we'd take a closer look at MedAdvisor Limited's (ASX:MDR) future prospects. MedAdvisor Limited, together with its subsidiaries, provides pharmacy-driven patient engagement solutions in Australia, New Zealand, the United States, and the United Kingdom. With the latest financial year loss of AU$11m and a trailing-twelve-month loss of AU$9.0m, the AU$215m market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on MedAdvisor's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

View our latest analysis for MedAdvisor

Consensus from 3 of the Australian Healthcare Services analysts is that MedAdvisor is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of AU$2.0m in 2025. Therefore, the company is expected to breakeven just over a year 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 120%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for MedAdvisor 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 that a high growth rate is not unusual, especially if the company is currently in an investment period.

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 22% 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:

There are too many aspects of MedAdvisor to cover in one brief article, but the key fundamentals for the company can all be found in one place – MedAdvisor's company page on Simply Wall St. We've also put together a list of relevant aspects you should further examine:

1. Valuation: What is MedAdvisor 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 MedAdvisor 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 MedAdvisor’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.