Aveanna Healthcare Holdings Inc. (NASDAQ:AVAH) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Aveanna Healthcare Holdings Inc., a diversified home care platform company, provides pediatric and adult healthcare services in the United States. On 30 December 2023, the US$481m market-cap company posted a loss of US$135m for its most recent financial year. As path to profitability is the topic on Aveanna Healthcare Holdings' investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

Check out our latest analysis for Aveanna Healthcare Holdings

Aveanna Healthcare Holdings is bordering on breakeven, according to the 8 American Healthcare analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$9.9m in 2026. Therefore, the company is expected to breakeven roughly 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 117%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for Aveanna Healthcare Holdings given that this is a high-level summary, but, take into account that typically 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 Aveanna Healthcare Holdings 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:

This article is not intended to be a comprehensive analysis on Aveanna Healthcare Holdings, so if you are interested in understanding the company at a deeper level, take a look at Aveanna Healthcare Holdings' company page on Simply Wall St. We've also compiled a list of essential aspects you should further examine:

1. Valuation: What is Aveanna Healthcare Holdings 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 Aveanna Healthcare Holdings 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 Aveanna Healthcare Holdings’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.