Reliq Health Technologies Inc. (CVE:RHT) Could Be Less Than A Year Away From Profitability
Reliq Health Technologies Inc. (CVE:RHT) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Reliq Health Technologies Inc., a healthcare technology company, develops secure telemedicine and virtual care solutions for the healthcare market. The CA$47m market-cap company’s loss lessened since it announced a CA$8.2m loss in the full financial year, compared to the latest trailing-twelve-month loss of CA$458k, as it approaches breakeven. Many investors are wondering about the rate at which Reliq Health Technologies will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
See our latest analysis for Reliq Health Technologies
Reliq Health Technologies is bordering on breakeven, according to some Canadian Healthcare Services analysts. They anticipate the company to incur a final loss in 2023, before generating positive profits of CA$6.1m in 2024. The company is therefore projected to breakeven around a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 135% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving Reliq Health Technologies' growth isn’t the focus of this broad overview, however, keep 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 we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 0.3% 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:
This article is not intended to be a comprehensive analysis on Reliq Health Technologies, so if you are interested in understanding the company at a deeper level, take a look at Reliq Health Technologies' company page on Simply Wall St. We've also compiled a list of essential factors you should look at:
Historical Track Record: What has Reliq Health Technologies' 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 Reliq Health Technologies' 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.
