Hipages Group Holdings Limited (ASX:HPG): Are Analysts Optimistic?
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. The AU$139m market-cap company’s loss lessened since it announced a AU$6.2m loss in the full financial year, compared to the latest trailing-twelve-month loss of AU$1.2m, as it approaches breakeven. Many investors are wondering about the rate at which Hipages Group Holdings 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.
See our latest analysis for Hipages Group Holdings
Consensus from 4 of the Australian Interactive Media and Services analysts is that Hipages Group Holdings is on the verge of breakeven. They anticipate the company to incur a final loss in 2022, before generating positive profits of AU$2.2m in 2023. The company is therefore projected to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow 67% year-on-year, on average, which is extremely buoyant. 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 Hipages Group Holdings' upcoming projects, however, 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.
Before we wrap up, there’s one aspect worth mentioning. Hipages Group Holdings currently has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which typically has high 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.
This article is not intended to be a comprehensive analysis on Hipages Group Holdings, so if you are interested in understanding the company at a deeper level, take a look at Hipages Group Holdings' company page on Simply Wall St. We've also compiled a list of important factors 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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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