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When Will Ontrak, Inc. (NASDAQ:OTRK) Breakeven?

NASDAQ:OTRK): Ontrak, Inc. operates as an artificial intelligence powered, virtualized outpatient healthcare treatment company that provides in-person or telehealth intervention services to health plans and other third-party payors. The US$1.0b market-cap posted a loss in its most recent financial year of US$25.7m and a latest trailing-twelve-month loss of US$31.1m leading to an even wider gap between loss and breakeven. Many investors are wondering the rate at which OTRK 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 OTRK.” data-reactid=”28″>Ontrak, Inc.’s (NASDAQ:OTRK): Ontrak, Inc. operates as an artificial intelligence powered, virtualized outpatient healthcare treatment company that provides in-person or telehealth intervention services to health plans and other third-party payors. The US$1.0b market-cap posted a loss in its most recent financial year of US$25.7m and a latest trailing-twelve-month loss of US$31.1m leading to an even wider gap between loss and breakeven. Many investors are wondering the rate at which OTRK 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 OTRK.

Check out our latest analysis for Ontrak ” data-reactid=”29″>Check out our latest analysis for Ontrak

Consensus from the 5 Healthcare analysts is OTRK is on the verge of breakeven. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$22m in 2023. So, OTRK is predicted to breakeven approximately 3 years from now. How fast will OTRK have to grow each year in order to reach the breakeven point by 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow 73% 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.

earnings-per-share-growth

I’m not going to go through company-specific developments for OTRK given that this is a high-level summary, though, bear in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before I wrap up, there’s one issue worth mentioning. OTRK currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. Oftentimes, losses exist only on paper but other times, it can be a red flag.

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OTRK’s company page on Simply Wall St. I’ve also compiled a list of important aspects you should look at:” data-reactid=”50″>This article is not intended to be a comprehensive analysis on OTRK, so if you are interested in understanding the company at a deeper level, take a look at OTRK’s company page on Simply Wall St. I’ve also compiled a list of important aspects you should look at:

  1. Valuation: What is OTRK 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 OTRK 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 Ontrak’s board and the CEO’s back ground.
  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.

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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