Yahoo Finance CloudMD Software & Services Inc. (CVE:DOC): Are Analysts Optimistic?
We feel now is a pretty good time to analyse CloudMD Software & Services Inc.'s (CVE:DOC) business as it appears the company may be on the cusp of a considerable accomplishment. CloudMD Software & Services Inc., a healthcare technology company, provides SaaS based health technology solutions to medical clinics in North America. With the latest financial year loss of CA$12m and a trailing-twelve-month loss of CA$16m, the CA$422m market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on CloudMD Software & Services' investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
View our latest analysis for CloudMD Software & Services
Consensus from 6 of the Canadian Healthcare analysts is that CloudMD Software & Services is on the verge of breakeven. They expect the company to post a final loss in 2022, before turning a profit of CA$7.2m in 2023. Therefore, the company is expected to breakeven roughly 2 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 69% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Given this is a high-level overview, we won’t go into details of CloudMD Software & Services' upcoming projects, however, take into account that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 1.2% 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 CloudMD Software & Services 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 CloudMD Software & Services, take a look at CloudMD Software & Services' company page on Simply Wall St. We've also compiled a list of relevant factors you should further research:
Valuation: What is CloudMD Software & Services 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 CloudMD Software & Services is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on CloudMD Software & Services’s board and the CEO’s background.
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.
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.
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