Yahoo Sports Breakeven On The Horizon For Reliq Health Technologies Inc. (CVE:RHT)
We feel now is a pretty good time to analyse Reliq Health Technologies Inc.'s (CVE:RHT) business as it appears the company may be on the cusp of a considerable accomplishment. Reliq Health Technologies Inc., a healthcare technology company, develops secure telemedicine and virtual care solutions for the healthcare market. The CA$103m market-cap company posted a loss in its most recent financial year of CA$8.2m and a latest trailing-twelve-month loss of CA$458k shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which Reliq Health Technologies will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
View our latest analysis for Reliq Health Technologies
According to some industry analysts covering Reliq Health Technologies, breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of CA$6.1m in 2024. Therefore, the company is expected to breakeven just over a year from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 135% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
We're not going to go through company-specific developments for Reliq Health Technologies given that this is a high-level summary, however, bear in mind that by and large healthcare tech companies, depending on the stage of product development, have irregular periods of cash flow. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.
Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 0.3% 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 Reliq Health Technologies, so if you are interested in understanding the company at a deeper level, take a look at Reliq Health Technologies' company page on Simply Wall St. We've also put together a list of key aspects you should look at:
Valuation: What is Reliq 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 Reliq Health Technologies 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 Reliq Health Technologies’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.
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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