Yahoo Finance When Can We Expect A Profit From Yojee Limited (ASX:YOJ)?
With the business potentially at an important milestone, we thought we'd take a closer look at Yojee Limited's (ASX:YOJ) future prospects. Yojee Limited operates a cloud-based software as a service (SaaS) logistics platform in the Asia-Pacific region. The AU$152m market-cap company announced a latest loss of AU$11m on 30 June 2021 for its most recent financial year result. Many investors are wondering about the rate at which Yojee will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
View our latest analysis for Yojee
According to some industry analysts covering Yojee, breakeven is near. They expect the company to post a final loss in 2023, before turning a profit of AU$12m in 2024. The company is therefore projected to breakeven around 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 78% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, we won’t go into details of Yojee's upcoming projects, but, 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 aspect worth mentioning. Yojee currently has no debt on its balance sheet, which is quite unusual for a cash-burning 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:
This article is not intended to be a comprehensive analysis on Yojee, so if you are interested in understanding the company at a deeper level, take a look at Yojee's company page on Simply Wall St. We've also compiled a list of pertinent factors you should further examine:
Valuation: What is Yojee 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 Yojee 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 Yojee’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.
