Doctor Care Anywhere Group PLC (ASX:DOC) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Doctor Care Anywhere Group PLC, together with its subsidiaries, provides digital healthcare and development services in the United Kingdom, Australia, and the Republic of Ireland. The AU$24m market-cap company posted a loss in its most recent financial year of UK£8.2m and a latest trailing-twelve-month loss of UK£6.4m shrinking the gap between loss and breakeven. The most pressing concern for investors is Doctor Care Anywhere Group's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Doctor Care Anywhere Group

According to some industry analysts covering Doctor Care Anywhere Group, breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of UK£700k in 2025. Therefore, the company is expected to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 108% year-on-year, on average, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Doctor Care Anywhere Group's growth isn’t the focus of this broad overview, however, take into account that generally a healthcare tech company has lumpy cash flows which are contingent on the product and stage of development the company is in. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

One thing we would like to bring into light with Doctor Care Anywhere Group is its debt-to-equity ratio of over 2x. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.

Next Steps:

There are key fundamentals of Doctor Care Anywhere Group 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 Doctor Care Anywhere Group, take a look at Doctor Care Anywhere Group's company page on Simply Wall St. We've also compiled a list of relevant aspects you should look at:

1. Valuation: What is Doctor Care Anywhere Group 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 Doctor Care Anywhere Group 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 Doctor Care Anywhere Group’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.