Yahoo Finance NantHealth Inc (NASDAQ:NH) Is Expected To Breakeven
NantHealth Inc’s (NASDAQ:NH): NantHealth, Inc., together with its subsidiaries, operates as an evidence-based personalized healthcare company in the United States and internationally. The US$358.34m market-cap posted a loss in its most recent financial year of -US$131.40m and a latest trailing-twelve-month loss of -US$125.25m shrinking the gap between loss and breakeven. The most pressing concern for investors is NH’s path to profitability – when will it breakeven? In this article, I will touch on the expectations for NH’s growth and when analysts expect the company to become profitable.
View out our latest analysis for NantHealth
Expectation from Healthcare Services analysts is NH is on the verge of breakeven. They expect the company to post a final loss in 2021, before turning a profit of US$16.03m in 2022. NH is therefore projected to breakeven around a few months from now. What rate will NH have to grow year-on-year in order to breakeven on this date? Using a line of best fit, I calculated an average annual growth rate of 31.67%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving NH’s growth isn’t the focus of this broad overview, however, take into account that typically a healthcare tech company has lumpy cash flows which are contingent on the product and stage of development the company is in. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.
One thing I would like to bring into light with NH is its debt-to-equity ratio of 114.98%. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in NH’s case, it has significantly overshot. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.
Next Steps:
There are too many aspects of NH to cover in one brief article, but the key fundamentals for the company can all be found in one place – NH’s company page on Simply Wall St. I’ve also put together a list of important aspects you should further research:
Valuation: What is NH 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 NH 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 NantHealth’s board and the CEO’s back ground.
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.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
