We feel now is a pretty good time to analyse Damstra Holdings Limited's (ASX:DTC) business as it appears the company may be on the cusp of a considerable accomplishment. Damstra Holdings Limited provides workplace management solutions to various industry segments in Australia, the United States, New Zealand, and internationally. The AU$160m market-cap company announced a latest loss of AU$8.6m on 30 June 2021 for its most recent financial year result. As path to profitability is the topic on Damstra 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.

See our latest analysis for Damstra Holdings

According to the 4 industry analysts covering Damstra Holdings, the consensus is that breakeven is near. They expect the company to post a final loss in 2022, before turning a profit of AU$1.3m in 2023. The company is therefore projected to breakeven around 2 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 105% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict. earnings-per-share-growth

Given this is a high-level overview, we won’t go into details of Damstra Holdings' upcoming projects, though, take into account that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 8.5% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Damstra Holdings which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Damstra Holdings, take a look at Damstra Holdings' company page on Simply Wall St. We've also compiled a list of essential aspects you should further research:

Valuation: What is Damstra 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 Damstra Holdings is currently mispriced by the market. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Damstra Holdings’s board and the CEO’s background. 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.

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.

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