Analysts Expect Breakeven For Halyard Health Inc (NYSE:HYH)
Halyard Health Inc’s (NYSE:HYH): Halyard Health, Inc. operates as a medical technology company that focuses on eliminating pain, speeding recovery, and preventing infection for healthcare providers and patients worldwide. On 31 December 2017, the US$2.20B market-cap posted a loss of -US$32.10M for its most recent financial year. The most pressing concern for investors is HYH’s path to profitability – when will it breakeven? I’ve put together a brief outline of industry analyst expectations for HYH, its year of breakeven and its implied growth rate.
View our latest analysis for Halyard Health
According to the industry analysts covering HYH, breakeven is near. They anticipate the company to incur a final loss in 2017, before generating positive profits of US$61.35M in 2018. HYH is therefore projected to breakeven around a few months from now. How fast will HYH have to grow each year in order to reach the breakeven point by 2018? Working backwards from analyst estimates, it turns out that they expect the company to grow 63.72% year-on-year, on average, which is extremely buoyant. 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 detail the detail of HYH’s upcoming projects, but, keep in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
Before I wrap up, there’s one issue worth mentioning. HYH currently has a relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in HYH’s case is 47.80%. Note that a higher debt obligation increases the risk in investing in the loss-making company.
Next Steps:
There are key fundamentals of HYH 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 HYH, take a look at HYH’s company page on Simply Wall St. I’ve also put together a list of essential aspects you should further research:
Historical Track Record: What has HYH’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 Halyard 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.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
