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Healwell AI Inc.'s (TSE:AIDX) Shift From Loss To Profit

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Healwell AI Inc. (TSE:AIDX) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Healwell AI Inc., a healthcare technology company, focuses on AI and data science for preventative care. The CA$295m market-cap company’s loss lessened since it announced a CA$32m loss in the full financial year, compared to the latest trailing-twelve-month loss of CA$20m, as it approaches breakeven. The most pressing concern for investors is Healwell AI's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for Healwell AI

Healwell AI is bordering on breakeven, according to the 5 Canadian Healthcare analysts. They expect the company to post a final loss in 2025, before turning a profit of CA$17m in 2026. So, the company is predicted 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 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 101% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth
TSX:AIDX Earnings Per Share Growth February 4th 2025

Given this is a high-level overview, we won’t go into details of Healwell AI's upcoming projects, though, take into account that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 20% 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 Healwell AI to cover in one brief article, but the key fundamentals for the company can all be found in one place – Healwell AI's company page on Simply Wall St. We've also put together a list of important factors you should further examine:

  1. Valuation: What is Healwell AI 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 Healwell AI 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 Healwell AI’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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.