We feel now is a pretty good time to analyse Volpara Health Technologies Limited's (ASX:VHT) business as it appears the company may be on the cusp of a considerable accomplishment. Volpara Health Technologies Limited provides breast imaging analytics software products in New Zealand. The AU$146m market-cap company announced a latest loss of NZ$16m on 31 March 2022 for its most recent financial year result. The most pressing concern for investors is Volpara Health Technologies' path to profitability – when will it 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 Volpara Health Technologies

Volpara Health Technologies is bordering on breakeven, according to the 4 Australian Healthcare Services analysts. They anticipate the company to incur a final loss in 2023, before generating positive profits of NZ$641k in 2024. The company is therefore projected to breakeven around 2 years from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 96%, which is rather optimistic! 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 Volpara Health Technologies given that this is a high-level summary, but, take into account that by and large 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’d like to point out is that The company has managed its capital judiciously, with debt making up 0.5% 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 too many aspects of Volpara Health Technologies to cover in one brief article, but the key fundamentals for the company can all be found in one place – Volpara Health Technologies' company page on Simply Wall St. We've also put together a list of important aspects you should look at:

1. Valuation: What is Volpara Health Technologies 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 Volpara Health Technologies 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 Volpara Health Technologies’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.