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American Oncology Network, Inc. Class A (AONC)
:AONC
Top Page
American Oncology Network
(OTC:AONC)
50Neutral
American Oncology Network (AONC) vs. S&P 500 (SPY)
Market Cap
$207.72M
Dividend YieldN/A
Average Volume (3M)987.00
Price to Earnings (P/E)―
Beta (1Y)-0.97
Revenue Growth373.61%
EPS Growth-184.37%
CountryUS
Employees1,525
SectorHealthcare
Sector Strength78
IndustryHealthcare Providers & Services
Share Statistics
EPS (TTM)-2.14
Shares Outstanding29,935,305
10 Day Avg. Volume1,356
30 Day Avg. Volume987
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.10
Price to Cash Flow (P/CF)-1.90
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
American Oncology Network Business Overview & Revenue Model
Company DescriptionAmerican Oncology Network (AONC) is a collaborative healthcare network that focuses on providing comprehensive cancer care services. The company partners with community-based oncologists to enhance the quality of oncology care, streamline operations, and improve patient outcomes. AONC offers a range of services including cancer treatment, clinical trials, and patient support services, aiming to make advanced cancer care accessible and efficient.
How the Company Makes MoneyAmerican Oncology Network (AONC) generates revenue primarily through partnerships with oncology practices and healthcare providers. By integrating with community oncology practices, AONC offers management services that help streamline operations, improve billing processes, and enhance patient care, leading to increased practice efficiency and profitability. Additionally, AONC earns revenue by facilitating clinical trials, providing access to cutting-edge treatments, and leveraging economies of scale in purchasing and resource allocation. Their business model focuses on enhancing the operational capabilities of partner practices, which in turn drives shared financial success. Significant partnerships with pharmaceutical companies and healthcare networks further bolster AONC's revenue through collaborative initiatives and expanded treatment options.
American Oncology Network Financial Statement Overview
Summary
American Oncology Network is facing significant financial challenges, with declining profitability and cash flow issues. High leverage and negative equity position pose risks to financial stability. Despite revenue growth, operational inefficiencies and financial constraints need to be addressed to improve the company's financial health.Income Statement
The company has shown revenue growth over the years, with a 11.3% increase from 2022 to 2023. However, both the EBIT and EBITDA margins have turned negative in 2023, reflecting operational challenges. Gross profit margin has decreased from 8.3% in 2022 to 6.5% in 2023, and the net profit margin has turned negative, indicating weak profitability performance.45
Neutral
Balance Sheet
The company is highly leveraged with a negative stockholders' equity of -$161.7 million, indicating potential financial instability. Debt-to-equity ratio cannot be calculated due to negative equity, and the company has no equity buffer against its liabilities. The equity ratio is negative, reflecting that liabilities exceed assets.30
Negative
Cash Flow
The company has negative free cash flow, which has deteriorated further in 2023. Operating cash flow is also negative, signaling cash flow challenges. The free cash flow to net income ratio cannot be calculated due to negative income, indicating cash generation issues are exacerbating net losses.40
Negative
| Breakdown | ||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.23B | 1.28B | 1.15B | 943.75M | 724.74M | Gross Profit |
| 74.55M | 82.80M | 95.45M | 77.96M | 66.11M | EBIT |
| -27.02M | -49.15M | 5.57M | 911.00K | 22.07M | EBITDA |
| -8.00M | -39.35M | 23.09M | 7.85M | 25.94M | Net Income Common Stockholders |
| -3.43M | -5.54M | 2.59M | -105.00K | 21.95M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 63.93M | 63.93M | 36.78M | 27.35M | 0.00 | Total Assets |
| 374.45M | 374.45M | 326.23M | 248.30M | 9.57K | Total Debt |
| 128.32M | 128.32M | 127.13M | 63.69M | 0.00 | Net Debt |
| 99.79M | 99.79M | 100.20M | 36.34M | 0.00 | Total Liabilities |
| 368.73M | 303.74M | 264.21M | 188.75M | 10.41K | Stockholders Equity |
| -161.73M | -161.73M | -14.20M | ― | -834.00 |
| Cash Flow | Free Cash Flow | |||
| -8.24M | -30.40M | -13.98M | -34.66M | 25.02M | Operating Cash Flow |
| 5.10M | -18.12M | -6.78M | -26.34M | 37.24M | Investing Cash Flow |
| 5.66M | -35.40M | -13.99M | -10.69M | -14.67M | Financing Cash Flow |
| -1.86M | 55.13M | 15.35M | 26.54M | 16.26M |
American Oncology Network Technical Analysis
Positive
4.80
Price Trends
5.14
Negative
4.50
Positive
3.58
Positive
Market Momentum
-0.03
Positive
47.96
Neutral
5.81
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AONC, the sentiment is Positive. The current price of 4.8 is below the 20-day moving average (MA) of 5.00, below the 50-day MA of 5.14, and above the 200-day MA of 3.58, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 47.96 is Neutral, neither overbought nor oversold. The STOCH value of 5.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AONC.
American Oncology Network Risk Analysis
American Oncology Network disclosed 53 risk factors in its most recent earnings report. American Oncology Network reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
American Oncology Network Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $11.21B | 10.38 | 17.82% | 0.46% | 10.82% | 65.64% | |
73 Outperform | $82.76B | 15.01 | -230.22% | 0.81% | 8.67% | 15.32% | |
72 Outperform | $12.03B | 3.92 | 110.75% | ― | 0.57% | 440.71% | |
71 Outperform | $14.24B | 23.96 | 3.87% | 1.82% | -0.57% | 8.25% | |
52 Neutral | $373.70M | ― | 39.18% | ― | 1.16% | -278.41% | |
50 Neutral | $207.72M | ― | 3.43% | ― | 373.61% | -184.37% | |
49 Neutral | $6.90B | -0.08 | -53.01% | 2.43% | 24.84% | -3.06% |
* Healthcare Sector Average
Performance Comparison
AONC
American Oncology Network
5.00
-0.74
-12.89%
CYH
Community Health
2.62
-0.28
-9.66%
FMS
Fresenius Medical Care
24.19
4.50
22.85%
HCA
HCA Healthcare
312.87
-6.53
-2.04%
THC
Tenet Healthcare
121.20
20.82
20.74%
UHS
Universal Health
166.61
-7.10
-4.09%
American Oncology Network Earnings Call Summary
Earnings Call Date: Nov 12, 2024 | % Change Since: 57.38% | Next Earnings Date: Mar 27, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant revenue growth and expansion through acquisitions, as well as the launch of an innovative analytics platform. However, these positives were offset by increased costs, a higher net loss, and a decrease in adjusted EBITDA.Highlights
Revenue Growth
Revenue increased by $60.6 million or 20% compared to the same period last year, with revenue for Q1 2024 at $364.3 million.
Expansion and Acquisitions
Completed 2 practice acquisitions in Q1 and announced 2 additional acquisitions in Q2, expanding presence in Texas, Maryland, Hawaii, and Georgia.
Provider Network Growth
Added 17 new providers in Q1 and a total of 40 year-to-date, strengthening the platform.
Launch of MiBA
Introduced Meaningful Insights Biotech Analytics to enhance personalized cancer care and patient outcomes using AI technologies.
High Net Promoter Scores
Achieved Net Promoter Scores of 75% or greater from physicians and team members, and over 90% from patients.
Lowlights
Increased Costs
Cost of revenue increased by $76.4 million, primarily due to higher drug and medical supply costs and increased cost per patient encounter.
Net Loss
Reported a net loss before non-controlling interest of $24.9 million for Q1 2024, compared to a loss of $1.5 million in the same period last year.
Decrease in Adjusted EBITDA
Adjusted EBITDA decreased to $2 million from $4 million in the year-ago period.
Company Guidance
In the first quarter of 2024, American Oncology Network (AONC) reported a revenue increase of 20% to $364.3 million, up from $303.7 million in the previous year, driven by a 12.8% rise in revenue per encounter and a 6.2% increase in patient encounters. Despite these gains, the company experienced a net loss before non-controlling interest of $24.9 million, compared to a $1.5 million loss in the prior year, with adjusted EBITDA falling to $2 million from $4 million. The cost of revenue rose to $354.9 million, primarily due to higher drug and medical supply costs, while equity-based compensation accounted for $13.3 million. AONC's strategic growth included the addition of 17 new providers and significant acquisitions, enhancing its platform with the launch of Meaningful Insights Biotech Analytics (MiBA) to improve cancer care through AI-driven insights. The company ended the quarter with a total liquidity of $132.7 million, including cash and cash equivalents of $74.9 million, and maintained an $81.3 million outstanding balance under its PNC Loan Facility.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.