Volpara Health Technologies Limited (ASX:VHT) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Volpara Health Technologies Limited provides breast imaging analytics software products in New Zealand. The AU$191m market-cap company posted a loss in its most recent financial year of NZ$16m and a latest trailing-twelve-month loss of NZ$13m shrinking the gap between loss and breakeven. As path to profitability is the topic on Volpara Health Technologies' investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Check out our latest analysis for Volpara Health Technologies
According to the 2 industry analysts covering Volpara Health Technologies, the consensus is that breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of NZ$4.9m in 2025. So, the company is predicted to breakeven approximately 2 years from now. 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 94%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, we won’t go into details of Volpara Health Technologies' upcoming projects, but, take into account that by and large 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 Volpara Health Technologies has no debt on its balance sheet, which is rare for a loss-making healthcare tech company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
Next Steps:
There are key fundamentals of Volpara Health Technologies 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 Volpara Health Technologies, take a look at Volpara Health Technologies' company page on Simply Wall St. We've also compiled a list of relevant aspects you should look at:
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Valuation: What is Volpara Health Technologies 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 Volpara Health Technologies is currently mispriced by the market.
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Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Volpara Health Technologies’s board and the CEO’s background.
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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.