Skylight Health Group Inc.'s (CVE:SLHG) Path To Profitability

Skylight Health Group Inc. ( CVE:SLHG ) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Skylight Health Group Inc. operates as a healthcare services and technology company in the United States, Canada, the United Kingdom, and Colombia. With the latest financial year loss of CA$9.5m and a trailing-twelve-month loss of CA$11m, the CA$194m market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is Skylight Health Group'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.

See our latest analysis for Skylight Health Group

According to the 2 industry analysts covering Skylight Health Group, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2022, before generating positive profits of CA$500k in 2023. So, the company is predicted to breakeven approximately 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 73% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

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Before we wrap up, there’s one aspect worth mentioning. Skylight Health Group currently has no debt on its balance sheet, which is quite unusual for a cash-burning pharma, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are too many aspects of Skylight Health Group to cover in one brief article, but the key fundamentals for the company can all be found in one place – Skylight Health Group's company page on Simply Wall St . We've also put together a list of essential aspects you should further research:

1. Valuation : What is Skylight Health Group 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 Skylight Health Group 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 Skylight Health Group’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 .

This article by Simply Wall St is general in nature. 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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