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American Oncology Network, Inc. Class A (AONC)
:AONC
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American Oncology Network
(OTC:AONC)
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Rating:46Neutral
Price Target:
$11.00
▼(-15.38% Downside)
The overall score is primarily impacted by the company's financial instability, with persistent losses and negative equity being major concerns. While technical indicators show some positive momentum, the valuation remains unattractive due to ongoing losses.
Positive Factors
Revenue Growth
Strong revenue growth indicates increasing demand for AONC's services and successful expansion efforts, which can enhance market position and long-term sustainability.
Partnership Expansion
Expanding partnerships and adding experienced professionals can enhance service quality and patient care, strengthening AONC's competitive advantage and market presence.
Industry Demand
Rising demand for localized cancer care supports AONC's business model, providing a stable foundation for future growth and revenue generation.
Negative Factors
Financial Instability
Ongoing financial instability and negative equity pose risks to AONC's operational sustainability, potentially limiting its ability to invest in growth opportunities.
Negative Cash Flow
Negative cash flow from operations indicates inefficiencies and reliance on external financing, which can constrain AONC's financial flexibility and growth potential.
Low Profit Margins
Low profit margins highlight cost management challenges, potentially impacting AONC's ability to achieve profitability and invest in future growth initiatives.
American Oncology Network (AONC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$491.04M
Dividend YieldN/A
Average Volume (3M)1.74K
Price to Earnings (P/E)―
Beta (1Y)0.30
Revenue Growth166.39%
EPS Growth15.50%
CountryUS
Employees1,914
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding32,129,753
10 Day Avg. Volume1,522
30 Day Avg. Volume1,737
Financial Highlights & Ratios
PEG Ratio0.35
Price to Book (P/B)3.70
Price to Sales (P/S)0.04
P/FCF Ratio-2.68
Enterprise Value/Market Cap0.00
Enterprise Value/Revenue0.00
Enterprise Value/Gross Profit0.00
Enterprise Value/Ebitda0.00
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
American Oncology Network Business Overview & Revenue Model
Company DescriptionAmerican Oncology Network, Inc., through its subsidiaries, provides oncology services in the United States. The company provides various services to patients, including laboratory services for routine and specialized testing; in-house professional and technical pathology services with complete, accurate and timely pathology reports; in-house specialty pharmacy services with patient education, financial assistance, and 24/7 patient assistance; and care management support services including nutrition guidance. The company was incorporated in 2017 and is based in Fort Myers, Florida.
How the Company Makes MoneyAmerican Oncology Network generates revenue primarily through a combination of patient services, including the administration of chemotherapy and other cancer treatments, as well as clinical trials and research services. The company's revenue model is built on reimbursement from private and public insurance providers, which covers the cost of treatments provided to patients. Additionally, AONC may earn revenue from partnerships with pharmaceutical companies for clinical trials and drug development, further enhancing its financial performance. By working closely with community oncologists, AONC capitalizes on a growing demand for localized cancer care, thereby increasing patient volume and revenue streams.
American Oncology Network Earnings Call Summary
Earnings Call Date:May 15, 2024
(Q1-2024)
| % Change Since: |
Next Earnings Date:Nov 18, 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.Q1-2024 Updates
Positive Updates
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.
Negative Updates
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.American Oncology Network Financial Statement Overview
Summary
Despite strong revenue growth, AONC faces significant financial challenges. Persistent losses, negative margins, and financial instability due to negative equity and cash flow issues indicate a need for strategic restructuring.Income Statement
The company has demonstrated revenue growth over the last few years, growing from $724.7 million in 2020 to $1.76 billion in 2024, indicating strong top-line growth. However, the profitability metrics are concerning. The company has consistently reported negative EBIT and net income in recent years, with a net loss widening substantially in 2024. Gross profit margins have remained low, which suggests challenges in cost management.45
Neutral
Balance Sheet
The balance sheet reveals a weak equity position, with negative stockholders' equity in recent years, indicating potential financial distress. The debt-to-equity ratio is not meaningful due to negative equity, but the company has reduced its total debt from 2023 to 2024. The equity ratio is concerning due to persistent negative equity, highlighting financial instability.30
Negative
Cash Flow
Cash flow from operations has been negative in recent years, reflecting operational inefficiencies. Free cash flow is also negative, although there was a slight improvement in 2024. The company's reliance on financing activities to fund operations is notable, indicating cash flow challenges.35
Negative
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.76B | 1.28B | 1.15B | 943.75M | 724.74M |
| Gross Profit | 117.85M | 82.80M | 95.45M | 77.96M | 66.11M |
| EBITDA | 1.81M | -39.35M | 23.09M | 7.85M | 25.94M |
| Net Income | -3.97M | -5.54M | 2.59M | -105.00K | 21.95M |
Balance Sheet | |||||
| Total Assets | 470.33M | 374.45M | 326.23M | 248.30M | 49.03K |
| Cash, Cash Equivalents and Short-Term Investments | 72.64M | 63.93M | 36.78M | 27.35M | 25.00K |
| Total Debt | 147.37M | 128.32M | 127.13M | 63.69M | 0.00 |
| Total Liabilities | 362.32M | 303.74M | 264.21M | 22.26M | 24.87K |
| Stockholders Equity | 18.77M | -161.73M | 62.02M | 312.62M | 24.17K |
Cash Flow | |||||
| Free Cash Flow | -25.90M | -30.40M | -13.98M | -34.66M | 25.02M |
| Operating Cash Flow | -4.94M | -18.12M | -6.78M | -26.34M | 37.24M |
| Investing Cash Flow | -2.41M | -35.40M | -13.99M | -333.50M | -14.67M |
| Financing Cash Flow | 41.66M | 55.13M | 15.35M | 335.53M | 16.26M |
American Oncology Network Technical Analysis
Positive
13.00
Price Trends
9.87
Positive
10.40
Positive
8.96
Positive
Market Momentum
0.41
Positive
51.75
Neutral
53.26
Neutral
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 13 is above the 20-day moving average (MA) of 11.27, above the 50-day MA of 9.87, and above the 200-day MA of 8.96, indicating a neutral trend. The MACD of 0.41 indicates Positive momentum. The RSI at 51.75 is Neutral, neither overbought nor oversold. The STOCH value of 53.26 is Neutral, 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 54 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $471.15M | ― | -2.10% | ― | 1.02% | 89.58% | |
56 Neutral | $502.83M | 1.50 | ― | ― | 0.74% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
46 Neutral | $394.76M | -46.54 | -3.76% | ― | -22.14% | -787.87% | |
46 Neutral | $491.04M | ― | ― | ― | 166.39% | 15.50% | |
45 Neutral | $291.21M | ― | -3407.86% | ― | 21.67% | 16.74% | |
41 Neutral | $273.67M | ― | -73.31% | ― | 5.21% | 5.21% |
* Healthcare Sector Average
AONC
American Oncology Network
11.12
6.77
155.63%
CYH
Community Health
3.63
0.16
4.61%
CCRN
Cross Country Healthcare
7.53
-10.55
-58.35%
TOI
Oncology Institute
3.23
3.02
1438.10%
AGL
Agilon Health
0.73
-1.44
-66.36%
EHAB
Enhabit, Inc
9.31
1.58
20.44%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.