Loss-Making Aveanna Healthcare Holdings Inc. (NASDAQ:AVAH) Set To Breakeven

We feel now is a pretty good time to analyse Aveanna Healthcare Holdings Inc.'s (NASDAQ:AVAH) business as it appears the company may be on the cusp of a considerable accomplishment. Aveanna Healthcare Holdings Inc., a diversified home care platform company, provides pediatric and adult healthcare services in the United States. The US$898m market-cap company’s loss lessened since it announced a US$135m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$66m, as it approaches breakeven. The most pressing concern for investors is Aveanna Healthcare Holdings' path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Check out our latest analysis for Aveanna Healthcare Holdings

Aveanna Healthcare Holdings is bordering on breakeven, according to the 8 American Healthcare analysts. They expect the company to post a final loss in 2024, before turning a profit of US$18m in 2025. The company is therefore projected to breakeven around a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 93% year-on-year, on average, 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 Aveanna Healthcare Holdings' growth isn’t the focus of this broad overview, but, 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. Aveanna Healthcare Holdings currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

There are too many aspects of Aveanna Healthcare Holdings to cover in one brief article, but the key fundamentals for the company can all be found in one place – Aveanna Healthcare Holdings' company page on Simply Wall St. We've also compiled a list of key factors you should look at:

1. Valuation: What is Aveanna Healthcare Holdings 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 Aveanna Healthcare Holdings 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 Aveanna Healthcare Holdings’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.