CloudMD Software & Services Inc. (CVE:DOC) On The Verge Of Breaking Even
We feel now is a pretty good time to analyse CloudMD Software & Services Inc.'s (CVE:DOC) business as it appears the company may be on the cusp of a considerable accomplishment. CloudMD Software & Services Inc. operates as a healthcare technology company in North America. The company’s loss has recently broadened since it announced a CA$31m loss in the full financial year, compared to the latest trailing-twelve-month loss of CA$152m, moving it further away from breakeven. The most pressing concern for investors is CloudMD Software & Services' 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 CloudMD Software & Services
Consensus from 6 of the Canadian Healthcare analysts is that CloudMD Software & Services is on the verge of breakeven. They expect the company to post a final loss in 2022, before turning a profit of CA$17m in 2023. The company is therefore projected to breakeven around 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow 91% 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.
We're not going to go through company-specific developments for CloudMD Software & Services given that this is a high-level summary, though, take into account that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing we’d like to point out is that 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:
This article is not intended to be a comprehensive analysis on CloudMD Software & Services, so if you are interested in understanding the company at a deeper level, take a look at CloudMD Software & Services' company page on Simply Wall St. We've also compiled a list of pertinent aspects you should look at:
Historical Track Record: What has CloudMD Software & Services' performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on CloudMD Software & Services' 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.
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.
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