We feel now is a pretty good time to analyse Nordhealth AS' (OB:NORDH) business as it appears the company may be on the cusp of a considerable accomplishment. Nordhealth AS provides healthcare software solutions in Norway, Finland, Sweden, the United Kingdom, Denmark, DACH, and internationally. With the latest financial year loss of €13m and a trailing-twelve-month loss of €16m, the kr2.1b market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which Nordhealth will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
According to some industry analysts covering Nordhealth, breakeven is near. They expect the company to post a final loss in 2027, before turning a profit of €3.2m in 2028. Therefore, the company is expected to breakeven roughly 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2028? Working backwards from analyst estimates, it turns out that they expect the company to grow 95% year-on-year, on average, which is extremely buoyant. 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 Nordhealth given that this is a high-level summary, though, keep in mind that typically healthcare tech companies, depending on the stage of product development, have irregular periods of cash flow. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Check out our latest analysis for Nordhealth
Before we wrap up, there’s one aspect worth mentioning. Nordhealth currently has no debt on its balance sheet, which is quite unusual for a cash-burning healthcare tech company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
Next Steps:
There are key fundamentals of Nordhealth which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Nordhealth, take a look at Nordhealth's company page on Simply Wall St. We've also compiled a list of relevant aspects you should further research:
- Valuation: What is Nordhealth 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 Nordhealth 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 Nordhealth’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.
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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.