Aino Health AB (publ)'s (STO:AINO): Aino Health AB (publ) provides corporate health management solutions for private and public organizations in Finland. With the latest financial year loss of -kr22.0m and a trailing-twelve month of -kr14.7m, the kr94m market-cap alleviates its loss by moving closer towards its target of breakeven. The most pressing concern for investors is AINO’s path to profitability – when will it breakeven? I’ve put together a brief outline of industry analyst expectations for AINO, its year of breakeven and its implied growth rate.
AINO is bordering on breakeven, according to Healthcare Services analysts. They expect the company to post a final loss in 2019, before turning a profit of kr2.0m in 2020. So, AINO is predicted to breakeven approximately a few months from now. In order to meet this breakeven date, I calculated the rate at which AINO must grow year-on-year. It turns out an average annual growth rate of 137% is expected, which is rather optimistic! 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, I won’t go into details of AINO’s upcoming projects, however, bear in mind that typically 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.
Before I wrap up, there’s one aspect worth mentioning. AINO has managed its capital prudently, with debt making up 2.0% of equity. This means that AINO has predominantly funded its operations from equity capital,and its low debt obligation reduces the risk around investing in the loss-making company.
There are key fundamentals of AINO which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at AINO, take a look at AINO’s company page on Simply Wall St. I’ve also compiled a list of key factors you should look at:
- Valuation: What is AINO 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 AINO 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 Aino Health’s board and the CEO’s back ground.
- 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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