Doctor Care Anywhere Group PLC (ASX:DOC) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Doctor Care Anywhere Group PLC operates as a telehealth company in the United Kingdom. On 31 December 2020, the AU$309m market-cap company posted a loss of UK£31m for its most recent financial year. The most pressing concern for investors is Doctor Care Anywhere Group'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.

See our latest analysis for Doctor Care Anywhere Group

Doctor Care Anywhere Group is bordering on breakeven, according to the 2 Australian Healthcare Services analysts. They anticipate the company to incur a final loss in 2022, before generating positive profits of UK£200k in 2023. Therefore, the company is expected to breakeven roughly 2 years from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 68%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected. earnings-per-share-growth

Given this is a high-level overview, we won’t go into details of Doctor Care Anywhere Group's upcoming projects, but, bear in mind that typically a healthcare tech company has lumpy cash flows which are contingent on the product and stage of development the company is in. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that Doctor Care Anywhere Group has no debt on its balance sheet, which is quite unusual for a cash-burning healthcare tech company, 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:

This article is not intended to be a comprehensive analysis on Doctor Care Anywhere Group, so if you are interested in understanding the company at a deeper level, take a look at Doctor Care Anywhere Group's company page on Simply Wall St. We've also put together a list of relevant aspects you should look at:

Valuation: What is Doctor Care Anywhere 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 Doctor Care Anywhere Group 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 Doctor Care Anywhere Group’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. 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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