Reliq Health Technologies Inc. (CVE:RHT): Is Breakeven Near?
Simply Wall St · 09/15 11:45

We feel now is a pretty good time to analyse Reliq Health Technologies Inc.'s (CVE:RHT) business as it appears the company may be on the cusp of a considerable accomplishment. Reliq Health Technologies Inc., a healthcare technology company, develops secure telemedicine and virtual care solutions for the healthcare market. With the latest financial year loss of CA$8.2m and a trailing-twelve-month loss of CA$458k, the CA$97m market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is Reliq Health Technologies' 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 Reliq Health Technologies

Reliq Health Technologies is bordering on breakeven, according to some Canadian Healthcare Services analysts. They expect the company to post a final loss in 2023, before turning a profit of CA$6.1m in 2024. The company is therefore projected to breakeven just over a year from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 135% is expected, 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.

TSXV:RHT Earnings Per Share Growth September 15th 2023

Given this is a high-level overview, we won’t go into details of Reliq Health Technologies' upcoming projects, but, take into account that typically healthcare tech companies, depending on the stage of product development, have irregular periods of cash flow. 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 prudently, with debt making up 0.3% 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:

This article is not intended to be a comprehensive analysis on Reliq Health Technologies, so if you are interested in understanding the company at a deeper level, take a look at Reliq Health Technologies' company page on Simply Wall St. We've also put together a list of pertinent factors you should look at:

  1. Valuation: What is Reliq 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 Reliq 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 Reliq 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.