Yahoo Finance When Can We Expect A Profit From Oscar Health, Inc. (NYSE:OSCR)?
Oscar Health, Inc. (NYSE:OSCR) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Oscar Health, Inc. operates as a health insurance in the United States. On 31 December 2023, the US$3.4b market-cap company posted a loss of US$271m for its most recent financial year. The most pressing concern for investors is Oscar Health's 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 Oscar Health
According to the 2 industry analysts covering Oscar Health, the consensus is that breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of US$119m 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 77% 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.
Given this is a high-level overview, we won’t go into details of Oscar Health's upcoming projects, however, keep in mind that by and large 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. The company has managed its capital prudently, with debt making up 37% 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 too many aspects of Oscar Health to cover in one brief article, but the key fundamentals for the company can all be found in one place – Oscar Health's company page on Simply Wall St. We've also put together a list of relevant aspects you should further examine:
Historical Track Record: What has Oscar Health'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.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Oscar Health'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.
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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.
