SHL Telemedicine Ltd. (VTX:SHLTN): Is Breakeven Near?

SHL Telemedicine Ltd. (VTX:SHLTN) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. SHL Telemedicine Ltd., together with its subsidiaries, develops and markets personal telemedicine solutions in Israel, Europe, and internationally. The CHF70m market-cap company announced a latest loss of US$7.1m on 31 December 2023 for its most recent financial year result. The most pressing concern for investors is SHL Telemedicine's 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.

Check out our latest analysis for SHL Telemedicine

According to some industry analysts covering SHL Telemedicine, breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of US$176k in 2025. Therefore, the company is expected to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 96% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for SHL Telemedicine given that this is a high-level summary, however, keep in mind that generally 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 The company has managed its capital judiciously, with debt making up 17% 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 key fundamentals of SHL Telemedicine 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 SHL Telemedicine, take a look at SHL Telemedicine's company page on Simply Wall St. We've also put together a list of essential factors you should look at:

1. Historical Track Record: What has SHL Telemedicine's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on SHL Telemedicine'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.

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