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agilon health, inc. (NYSE:AGL): Is Breakeven Near?

agilon health, inc. (NYSE:AGL) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. agilon health, inc. offers healthcare services for seniors through primary care physicians in the communities of the United States. The US$14b market-cap company posted a loss in its most recent financial year of US$63m and a latest trailing-twelve-month loss of US$69m leading to an even wider gap between loss and breakeven. Many investors are wondering about the rate at which agilon health will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

agilon health is bordering on breakeven, according to the 7 American Healthcare analysts. They expect the company to post a final loss in 2022, before turning a profit of US$61m in 2023. So, the company is predicted to breakeven approximately 2 years from now. 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 73%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growthNYSE:AGL Earnings Per Share Growth July 15th 2021

We're not going to go through company-specific developments for agilon health given that this is a high-level summary, but, keep in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we would like to bring into light with agilon health is it currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

There are too many aspects of agilon health to cover in one brief article, but the key fundamentals for the company can all be found in one place – agilon health's company page on Simply Wall St. We've also compiled a list of essential aspects you should further research:

  1. 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.
  2. 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.
  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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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