eHealth Inc (NASDAQ:EHTH) Is Expected To Breakeven
eHealth Inc’s (NASDAQ:EHTH): eHealth, Inc. provides private online health insurance services in the United States and China. The US$307.08M market-cap posted a loss in its most recent financial year of -US$4.88M and a latest trailing-twelve-month loss of -US$21.16M leading to an even wider gap between loss and breakeven. The most pressing concern for investors is EHTH’s path to profitability – when will it breakeven? I’ve put together a brief outline of industry analyst expectations for EHTH, its year of breakeven and its implied growth rate.
View our latest analysis for eHealth
EHTH is bordering on breakeven, according to analysts. They anticipate the company to incur a final loss in 2018, before generating positive profits of US$9.63M in 2019. EHTH is therefore projected to breakeven around a few months from now. In order to meet this breakeven date, I calculated the rate at which EHTH must grow year-on-year. It turns out an average annual growth rate of 70.91% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, EHTH may become profitable much later than analysts predict.
I’m not going to go through company-specific developments for EHTH given that this is a high-level summary, 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 I wrap up, there’s one aspect worth mentioning. EHTH currently has no debt on its balance sheet, which is quite unusual for a cash-burning loss-making, growth company, which usually has a high level of debt relative to its equity. EHTH currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
Next Steps:
There are too many aspects of EHTH to cover in one brief article, but the key fundamentals for the company can all be found in one place – EHTH’s company page on Simply Wall St. I’ve also put together a list of important aspects you should further research:
Historical Track Record: What has EHTH’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 eHealth’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.
