Hipages Group Holdings Limited (ASX:HPG) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Hipages Group Holdings Limited operates an online tradie marketplace and software as a service provider in Australia. On 30 June 2021, the AU$504m market-cap company posted a loss of AU$6.2m for its most recent financial year. As path to profitability is the topic on Hipages Group Holdings' investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Hipages Group Holdings

Hipages Group Holdings is bordering on breakeven, according to the 4 Australian Interactive Media and Services analysts. They anticipate the company to incur a final loss in 2021, before generating positive profits of AU$1.1m in 2022. Therefore, the company is expected to breakeven roughly 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 49% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict. earnings-per-share-growth

We're not going to go through company-specific developments for Hipages Group Holdings given that this is a high-level summary, though, keep in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we’d like to point out is that Hipages Group Holdings has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.



Next Steps:

There are key fundamentals of Hipages Group 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 Hipages Group Holdings, take a look at Hipages Group Holdings' company page on Simply Wall St. We've also put together a list of pertinent aspects you should look at:

Valuation: What is Hipages Group 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 Hipages Group 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 Hipages Group 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.

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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.