With the business potentially at an important milestone, we thought we'd take a closer look at Aveanna Healthcare Holdings Inc.'s (NASDAQ:AVAH) future prospects. Aveanna Healthcare Holdings Inc., a diversified home care platform company, provides pediatric and adult healthcare services in the United States. The US$815m market-cap company posted a loss in its most recent financial year of US$135m and a latest trailing-twelve-month loss of US$66m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which Aveanna Healthcare Holdings 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 Aveanna Healthcare Holdings

Consensus from 8 of the American Healthcare analysts is that Aveanna Healthcare Holdings is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$21m in 2025. The company is therefore projected to breakeven around 12 months from now or less. At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 93%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of Aveanna Healthcare Holdings' upcoming projects, though, bear 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.

One thing we would like to bring into light with Aveanna Healthcare Holdings is it currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

This article is not intended to be a comprehensive analysis on Aveanna Healthcare Holdings, so if you are interested in understanding the company at a deeper level, take a look at Aveanna Healthcare Holdings' company page on Simply Wall St. We've also compiled a list of essential factors you should further examine:

1. Valuation: What is Aveanna Healthcare Holdings 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 Aveanna Healthcare Holdings is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Aveanna Healthcare Holdings’s board and the CEO’s background.
3. 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.