Yahoo Finance When Will agilon health, inc. (NYSE:AGL) Turn A Profit?
With the business potentially at an important milestone, we thought we'd take a closer look at agilon health, inc.'s (NYSE:AGL) future prospects. agilon health, inc. offers healthcare services for seniors through primary care physicians in the communities of the United States. On 31 December 2021, the US$10b market-cap company posted a loss of US$405m for its most recent financial year. The most pressing concern for investors is agilon health's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
View our latest analysis for agilon health
According to the 11 industry analysts covering agilon health, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$39m in 2023. Therefore, the company is expected to breakeven just over a year from now. How fast will the company 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 69% 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.
Given this is a high-level overview, we won’t go into details of agilon health's upcoming projects, however, bear in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 4.4% 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:
There are key fundamentals of agilon health 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 agilon health, take a look at agilon health's company page on Simply Wall St. We've also put together a list of important aspects you should look at:
Valuation: What is agilon 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 agilon 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 agilon 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
