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 focuses on operating as an online platform and software as a service provider in Australia. The company’s loss has recently broadened since it announced a AU$5.2m loss in the full financial year, compared to the latest trailing-twelve-month loss of AU$5.3m, moving it further away from breakeven. As path to profitability is the topic on Hipages Group 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.

Check out our latest analysis for Hipages Group Holdings

Hipages Group Holdings is bordering on breakeven, according to the 2 Australian Interactive Media and Services analysts. They expect the company to post a final loss in 2021, before turning a profit of AU$2.0m in 2022. Therefore, the company is expected to breakeven just over a year from today. 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 79% is expected, which is rather optimistic! 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 Hipages Group Holdings' upcoming projects, though, keep in mind that typically 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 aspect worth mentioning. The company has managed its capital judiciously, with debt making up 0.07% 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 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 essential aspects you should further examine:

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.

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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