Yahoo Finanzas When Will SHL Telemedicine Ltd. (VTX:SHLTN) Breakeven?
SHL Telemedicine Ltd. (VTX:SHLTN) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. SHL Telemedicine Ltd., together with its subsidiaries, develops and markets personal telemedicine solutions in Israel, Europe, and internationally. On 31 December 2023, the CHF79m market-cap company posted a loss of US$7.1m for its most recent financial year. As path to profitability is the topic on SHL Telemedicine's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
Check out our latest analysis for SHL Telemedicine
According to some industry analysts covering SHL Telemedicine, breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$176k in 2025. The company is therefore projected to breakeven just over a year from today. 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 96%, 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.
Given this is a high-level overview, we won’t go into details of SHL Telemedicine's upcoming projects, however, bear in mind that typically 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 prudently, with debt making up 17% 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 SHL Telemedicine to cover in one brief article, but the key fundamentals for the company can all be found in one place – SHL Telemedicine's company page on Simply Wall St. We've also compiled a list of essential aspects you should further examine:
Historical Track Record: What has SHL Telemedicine's 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 SHL Telemedicine'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.
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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.
