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Carebook Technologies Inc. (CVE:CRBK) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Carebook Technologies Inc., digital health company, develops digital health solutions. The CA$40m market-cap company posted a loss in its most recent financial year of CA$3.1m and a latest trailing-twelve-month loss of CA$6.1m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on Carebook Technologies' investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Consensus from 2 of the Canadian Healthcare Services analysts is that Carebook Technologies is on the verge of breakeven. They expect the company to post a final loss in 2020, before turning a profit of CA$1.3m in 2021. So, the company is predicted to breakeven approximately a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2021? Working backwards from analyst estimates, it turns out that they expect the company to grow 120% year-on-year, on average, which is rather optimistic! 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 Carebook Technologies given that this is a high-level summary, but, bear in mind that generally healthcare tech companies, depending on the stage of product development, have irregular periods of cash flow. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.
One thing we would like to bring into light with Carebook Technologies is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. These losses tend to occur only on paper, however, in other cases it can be forewarning.
This article is not intended to be a comprehensive analysis on Carebook Technologies, so if you are interested in understanding the company at a deeper level, take a look at Carebook Technologies' company page on Simply Wall St. We've also compiled a list of important aspects you should further examine:
Valuation: What is Carebook 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 Carebook 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 Carebook 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.
This article by Simply Wall St is general in nature. 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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