American Oncology Network (AONC) AI Stock Analysis

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American Oncology Network

(OTC:AONC)

Rating:57Neutral

Price Target:

$12.50

▲(13.22%Upside)

The most significant factor affecting the score is the company's financial performance, which is weak due to persistent losses, negative margins, and cash flow challenges. While the stock exhibits strong technical momentum, the overbought conditions could indicate a potential correction. The valuation metrics are unattractive due to the negative P/E ratio and absence of a dividend yield.

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

Market Cap

$487.51M

Dividend YieldN/A

Average Volume (3M)4.10K

Price to Earnings (P/E)―

Beta (1Y)0.02

Revenue Growth166.39%

EPS Growth15.50%

CountryUS

Employees1,914

SectorHealthcare

Sector Strength55

IndustryMedical - Care Facilities

Share Statistics

EPS (TTM)>-0.01

Shares Outstanding32,129,753

10 Day Avg. Volume7,732

30 Day Avg. Volume4,098

Financial Highlights & Ratios

PEG Ratio0.00

Price to Book (P/B)-343.73K

Price to Sales (P/S)0.00

P/FCF Ratio11.46

Enterprise Value/Market Cap0.59

Enterprise Value/Revenue0.06

Enterprise Value/Gross Profit2.64

Enterprise Value/Ebitda-4.53

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 leading network dedicated to providing comprehensive oncology services. The company operates in the healthcare sector, specifically focusing on cancer treatment and management. AONC partners with community-based oncologists to deliver integrated cancer care solutions, including advanced diagnostics, treatment options, and supportive care services to enhance patient outcomes.

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 Earnings Call Summary

Earnings Call Date:Mar 27, 2025

(Q1-2024)

% Change Since: 115.62%|

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 robust revenue growth, the company's financial health is concerning due to persistent losses, negative margins, financial instability from negative equity, and cash flow challenges. These factors suggest a need for strategic restructuring.

Income Statement

Neutral

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.

Balance Sheet

Negative

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.

Cash Flow

Negative

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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
	EBIT
-17.43M	-49.15M	5.57M	911.00K	22.07M
	EBITDA
1.81M	-39.35M	23.09M	7.85M	25.94M
	Net Income Common Stockholders
-3.97M	-5.54M	2.59M	-105.00K	21.95M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
72.64M	63.93M	36.78M	27.35M	0.00
	Total Assets
470.33M	374.45M	326.23M	248.30M	9.57K
	Total Debt
147.37M	128.32M	127.13M	63.69M	0.00
	Net Debt
84.52M	99.79M	100.20M	36.34M	0.00
	Total Liabilities
362.32M	303.74M	264.21M	188.75M	10.41K
	Stockholders Equity
18.77M	-161.73M	-14.20M	―	-834.00
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	-10.69M	-14.67M
	Financing Cash Flow
41.66M	55.13M	15.35M	26.54M	16.26M

American Oncology Network Technical Analysis

Technical Analysis Sentiment

Positive

Last Price11.04

Price Trends

50DMA

7.05

Positive

100DMA

6.09

Positive

200DMA

5.04

Positive

Market Momentum

MACD

1.38

Negative

RSI

81.47

Negative

STOCH

85.49

Negative

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 11.04 is above the 20-day moving average (MA) of 8.93, above the 50-day MA of 7.05, and above the 200-day MA of 5.04, indicating a bullish trend. The MACD of 1.38 indicates Negative momentum. The RSI at 81.47 is Negative, neither overbought nor oversold. The STOCH value of 85.49 is Negative, 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

Overall Rating

UnderperformOutperform

Sector (54)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AUNA	64 Neutral	$467.39M	11.02	9.93%	―	6.97%	―
EHAB	57 Neutral	$495.23M	―	-22.81%	―	-1.08%	-65.84%
AONC	57 Neutral	$487.51M	―	3.43%	―	166.39%	15.50%
Sector *	54 Neutral	$5.34B	3.27	-45.10%	3.30%	16.80%	0.02%
CYH	52 Neutral	$448.98M	―	39.18%	―	1.05%	-288.07%
TOI	48 Neutral	$227.03M	―	-227.77%	―	17.64%	13.86%
AVAH	44 Neutral	$957.91M	282.18	42.49%	―	9.05%	―

* Healthcare Sector Average

Performance Comparison

AONC

American Oncology Network

11.96

10.82

949.12%

CYH

Community Health

3.18

-0.32

-9.14%

TOI

Oncology Institute

2.44

1.99

442.22%

AVAH

Aveanna Healthcare Holdings

4.92

2.07

72.63%

EHAB

Enhabit, Inc

9.94

1.10

12.44%

AUNA

Auna S.A. Class A

6.34

-1.77

-21.82%

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.