Yahoo Finance Analysts Are Optimistic We'll See A Profit From Raiz Invest Limited (ASX:RZI)
We feel now is a pretty good time to analyse Raiz Invest Limited's (ASX:RZI) business as it appears the company may be on the cusp of a considerable accomplishment. Raiz Invest Limited provides financial services and products through its mobile micro-investing platform in Australia, Indonesia, and Malaysia. The AU$151m market-cap company announced a latest loss of AU$3.5m on 30 June 2021 for its most recent financial year result. As path to profitability is the topic on Raiz Invest's 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.
View our latest analysis for Raiz Invest
Consensus from 2 of the Australian Capital Markets analysts is that Raiz Invest is on the verge of breakeven. They anticipate the company to incur a final loss in 2021, before generating positive profits of AU$800k in 2022. Therefore, the company is expected to breakeven roughly 12 months from now or less. At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 136%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
We're not going to go through company-specific developments for Raiz Invest given that this is a high-level summary, however, keep in mind that typically 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 The company has managed its capital prudently, with debt making up 0.5% 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 Raiz Invest 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 Raiz Invest, take a look at Raiz Invest's company page on Simply Wall St. We've also put together a list of key factors you should further examine:
Historical Track Record: What has Raiz Invest'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 Raiz Invest'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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