American Oncology Network (AONC) AI Stock Analysis

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American Oncology Network

(OTC:AONC)

Rating:46Neutral

Price Target:

$6.00

▼( -8.54% Downside)

The overall stock score of 46 reflects significant concerns with the company's financial performance, primarily due to ongoing losses and financial instability. While there is some positive technical momentum, the valuation remains unattractive due to negative earnings and the absence of a dividend yield. The lack of earnings call data and notable corporate events further limits the potential upside.

American Oncology Network (AONC) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$306.61M

Dividend YieldN/A

Average Volume (3M)2.06K

Price to Earnings (P/E)―

Beta (1Y)-0.25

Revenue Growth166.39%

EPS Growth15.50%

CountryUS

Employees1,914

SectorHealthcare

Sector Strength43

IndustryMedical - Care Facilities

Share Statistics

EPS (TTM)>-0.01

Shares Outstanding32,088,710

10 Day Avg. Volume2,687

30 Day Avg. Volume2,061

Financial Highlights & Ratios

PEG Ratio-0.29

Price to Book (P/B)-1.57

Price to Sales (P/S)0.00

P/FCF Ratio3.80

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, 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 MoneyAONC primarily generates revenue through partnerships with community oncologists who utilize its network for delivering cancer care services. The company earns money by providing a platform of services that include access to cutting-edge diagnostics, treatment protocols, and administrative support, which are billed to patients and reimbursed by insurance providers. Additionally, AONC may have revenue streams from partnerships with pharmaceutical companies for clinical trials and from value-based care contracts that incentivize effective patient outcomes.

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

Neutral

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.

Balance Sheet

Negative

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.

Cash Flow

Negative

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.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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

Technical Analysis Sentiment

Positive

Last Price6.56

Price Trends

50DMA

5.66

Positive

100DMA

5.40

Positive

200DMA

4.55

Positive

Market Momentum

MACD

0.27

Positive

RSI

55.99

Neutral

STOCH

53.79

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 6.56 is above the 20-day moving average (MA) of 6.37, above the 50-day MA of 5.66, and above the 200-day MA of 4.55, indicating a bullish trend. The MACD of 0.27 indicates Positive momentum. The RSI at 55.99 is Neutral, neither overbought nor oversold. The STOCH value of 53.79 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 1 New Risks

Q3, 2024

American Oncology Network Peers Comparison

Overall Rating

UnderperformOutperform

Sector (53)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AUNA	64 Neutral	$504.77M	11.91	9.93%	―	6.97%	―
CYH	57 Neutral	$521.94M	―	39.18%	―	1.05%	-288.07%
TOI	55 Neutral	$266.69M	―	-227.77%	―	17.64%	13.86%
Sector *	53 Neutral	$5.14B	3.06	-43.57%	2.81%	16.81%	-0.12%
AVAH	51 Neutral	$1.04B	307.47	42.49%	―	9.05%	―
EHAB	49 Neutral	$537.26M	―	-22.81%	―	-1.08%	-65.84%
AONC	46 Neutral	$306.61M	―	3.43%	―	166.39%	15.50%

* Healthcare Sector Average

Performance Comparison

AONC

American Oncology Network

6.15

3.79

160.59%

CYH

Community Health

3.72

0.10

2.76%

TOI

Oncology Institute

2.99

2.51

522.92%

AVAH

Aveanna Healthcare Holdings

5.35

2.57

92.45%

EHAB

Enhabit, Inc

10.26

1.17

12.87%

AUNA

Auna S.A. Class A

6.82

-1.49

-17.93%

American Oncology Network Earnings Call Summary

Earnings Call Date:Mar 27, 2025

(Q1-2024)

% Change Since: 28.12%|

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.

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.