Analysts Expect Oncoclínicas do Brasil Serviços Médicos S.A. (BVMF:ONCO3) To Breakeven Soon

With the business potentially at an important milestone, we thought we'd take a closer look at Oncoclínicas do Brasil Serviços Médicos S.A.'s (BVMF:ONCO3) future prospects. Oncoclínicas do Brasil Serviços Médicos S.A. The R$3.1b market-cap company posted a loss in its most recent financial year of R$47m and a latest trailing-twelve-month loss of R$9.6m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which Oncoclínicas do Brasil Serviços Médicos 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 Oncoclínicas do Brasil Serviços Médicos

Oncoclínicas do Brasil Serviços Médicos is bordering on breakeven, according to the 7 Brazilian Healthcare analysts. They anticipate the company to incur a final loss in 2022, before generating positive profits of R$229m in 2023. Therefore, the company is expected to breakeven roughly a year from now or less! We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 52% 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.

We're not going to go through company-specific developments for Oncoclínicas do Brasil Serviços Médicos given that this is a high-level summary, however, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one issue worth mentioning. Oncoclínicas do Brasil Serviços Médicos currently has a debt-to-equity ratio of 104%. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Oncoclínicas do Brasil Serviços Médicos, so if you are interested in understanding the company at a deeper level, take a look at Oncoclínicas do Brasil Serviços Médicos' company page on Simply Wall St. We've also compiled a list of essential factors you should further examine:

1. Valuation: What is Oncoclínicas do Brasil Serviços Médicos 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 Oncoclínicas do Brasil Serviços Médicos 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 Oncoclínicas do Brasil Serviços Médicos’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.