Breakeven On The Horizon For WELL Health Technologies Corp. (TSE:WELL)

With the business potentially at an important milestone, we thought we'd take a closer look at WELL Health Technologies Corp.'s (TSE:WELL) future prospects. WELL Health Technologies Corp. owns and operates a portfolio of primary healthcare facilities. With the latest financial year loss of CA$7.8m and a trailing-twelve-month loss of CA$8.9m, the CA$1.3b market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is WELL Health Technologies' path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

See our latest analysis for WELL Health Technologies

According to the 9 industry analysts covering WELL Health Technologies, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2021, before generating positive profits of CA$5.2m in 2022. The company is therefore projected 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 114%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving WELL Health Technologies' growth isn’t the focus of this broad overview, though, 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 aspect worth mentioning. WELL Health Technologies currently has no debt on its balance sheet, which is rare for a loss-making loss-making, growth 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 too many aspects of WELL Health Technologies to cover in one brief article, but the key fundamentals for the company can all be found in one place – WELL Health Technologies' company page on Simply Wall St. We've also put together a list of pertinent aspects you should look at:

1. Valuation: What is WELL 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 WELL Health Technologies 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 WELL Health Technologies’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. 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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