CVE:DOC): CloudMD Software & Services Inc., provides SaaS based health technology solutions to medical clinics in Canada. The company’s loss has recently broadened since it announced a CA$4.6m loss in the full financial year, compared to the latest trailing-twelve-month loss of CA$4.9m, moving it further away from breakeven. Many investors are wondering the rate at which DOC will turn a profit, with the big question being “when will the company breakeven?” Below I will provide a high-level summary of the industry analysts’ expectations for DOC.” data-reactid=”28″>CloudMD Software & Services Inc.’s (CVE:DOC): CloudMD Software & Services Inc., provides SaaS based health technology solutions to medical clinics in Canada. The company’s loss has recently broadened since it announced a CA$4.6m loss in the full financial year, compared to the latest trailing-twelve-month loss of CA$4.9m, moving it further away from breakeven. Many investors are wondering the rate at which DOC will turn a profit, with the big question being “when will the company breakeven?” Below I will provide a high-level summary of the industry analysts’ expectations for DOC.
Check out our latest analysis for CloudMD Software & Services ” data-reactid=”29″>Check out our latest analysis for CloudMD Software & Services
According to the 3 industry analysts covering DOC, the consensus is breakeven is near. They expect the company to post a final loss in 2020, before turning a profit of CA$1.3m in 2021. DOC is therefore projected to breakeven around a couple of months from now! What rate will DOC have to grow year-on-year in order to breakeven on this date? Using a line of best fit, I calculated an average annual growth rate of 64%, 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 DOC’s growth isn’t the focus of this broad overview, however, keep in mind that by and large 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. DOC has managed its capital prudently, with debt making up 24% of equity. This means that DOC has predominantly funded its operations from equity capital,and its low debt obligation reduces the risk around investing in the loss-making company.
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DOC’s company page on Simply Wall St. I’ve also put together a list of pertinent aspects you should further examine:” data-reactid=”50″>There are key fundamentals of DOC 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 DOC, take a look at DOC’s company page on Simply Wall St. I’ve also put together a list of pertinent aspects you should further examine:
- Valuation: What is DOC 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 DOC 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 CloudMD Software & Services’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.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”55″>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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