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With the business potentially at an important milestone, we thought we'd take a closer look at Allscripts Healthcare Solutions, Inc.'s (NASDAQ:MDRX) future prospects. Allscripts Healthcare Solutions, Inc., together with its subsidiaries, provides information technology solutions and services to healthcare organizations in the United States, Canada, and internationally. The US$2.6b market-cap company’s loss lessened since it announced a US$133m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$92m, as it approaches breakeven. The most pressing concern for investors is Allscripts Healthcare Solutions' 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 Allscripts Healthcare Solutions
Allscripts Healthcare Solutions is bordering on breakeven, according to the 15 American Healthcare Services analysts. They anticipate the company to incur a final loss in 2020, before generating positive profits of US$28m in 2021. The company is therefore projected to breakeven around a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2021? Working backwards from analyst estimates, it turns out that they expect the company to grow 31% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
We're not going to go through company-specific developments for Allscripts Healthcare Solutions given that this is a high-level summary, however, bear in mind that generally healthcare tech companies, depending on the stage of product development, have irregular periods of cash flow. 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 The company has managed its capital judiciously, with debt making up 10% 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.
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There are key fundamentals of Allscripts Healthcare Solutions 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 Allscripts Healthcare Solutions, take a look at Allscripts Healthcare Solutions' company page on Simply Wall St. We've also compiled a list of key factors you should further research: