Oneview Healthcare PLC's (ASX:ONE) Shift From Loss To Profit

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$286m 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?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

See 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 anticipate the company to incur a final loss in 2025, before generating positive profits of €1.7m in 2026. The company is therefore projected to breakeven around 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 73%, 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 Oneview Healthcare given that this is a high-level summary, but, keep in mind that typically a healthcare tech company has lumpy cash flows which are contingent on the product and stage of development the company is in. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that Oneview Healthcare 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 key fundamentals of Oneview Healthcare which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Oneview Healthcare, take a look at Oneview Healthcare's company page on Simply Wall St. We've also compiled a list of pertinent aspects you should further research:

1. 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.
2. 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.
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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com