TSE:AH) future prospects. Aleafia Health Inc. operates as an integrated cannabis health and wellness company. With the latest financial year loss of CA$39.6m and a trailing-twelve-month loss of CA$18.1m, the CA$178m market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is Aleafia Health’s path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.” data-reactid=”28″>With the business potentially at an important milestone, we thought we’d take a closer look at Aleafia Health Inc.’s (TSE:AH) future prospects. Aleafia Health Inc. operates as an integrated cannabis health and wellness company. With the latest financial year loss of CA$39.6m and a trailing-twelve-month loss of CA$18.1m, the CA$178m market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is Aleafia Health’s path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
View our latest analysis for Aleafia Health ” data-reactid=”29″>View our latest analysis for Aleafia Health
According to the 2 industry analysts covering Aleafia Health, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2020, before generating positive profits of CA$10m in 2021. Therefore, the company is expected to breakeven just over a year from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 111% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Underlying developments driving Aleafia Health’s growth isn’t the focus of this broad overview, however, bear in mind that generally 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 14% 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:
Aleafia Health’s company page on Simply Wall St. We’ve also compiled a list of key factors you should look at:” data-reactid=”50″>This article is not intended to be a comprehensive analysis on Aleafia Health, so if you are interested in understanding the company at a deeper level, take a look at Aleafia Health’s company page on Simply Wall St. We’ve also compiled a list of key factors you should look at:
- Valuation: What is Aleafia Health 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 Aleafia Health 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 Aleafia Health’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.
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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