Plenti Group Limited (ASX:PLT) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Plenti Group Limited engages in the consumer fintech and investment business in Australia. The AU$271m market-cap company announced a latest loss of AU$15m on 31 March 2021 for its most recent financial year result. As path to profitability is the topic on Plenti Group's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Check out our latest analysis for Plenti Group

According to the 3 industry analysts covering Plenti Group, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2022, before generating positive profits of AU$1.9m 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 63% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected. earnings-per-share-growth

Given this is a high-level overview, we won’t go into details of Plenti Group's upcoming projects, though, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one issue worth mentioning. Plenti Group currently has a debt-to-equity ratio of over 2x. Typically, debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Plenti Group, so if you are interested in understanding the company at a deeper level, take a look at Plenti Group's company page on Simply Wall St. We've also put together a list of important factors you should further examine:

Historical Track Record: What has Plenti Group's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Plenti Group'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. 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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