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LiveHire Limited (ASX:LVH): Is Breakeven Near?

With the business potentially at an important milestone, we thought we'd take a closer look at LiveHire Limited's (ASX:LVH) future prospects. LiveHire Limited provides online talent acquisition software solutions to enterprises in Australia, New Zealand, and North America. The AU$24m market-cap company announced a latest loss of AU$14m on 30 June 2023 for its most recent financial year result. As path to profitability is the topic on LiveHire's 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.

View our latest analysis for LiveHire

LiveHire is bordering on breakeven, according to some Australian Software analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of AU$3.6m in 2026. The company is therefore projected to breakeven around 3 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 101%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth
earnings-per-share-growth

We're not going to go through company-specific developments for LiveHire given that this is a high-level summary, but, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

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One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 2.3% 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:

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

  1. Valuation: What is LiveHire 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 LiveHire is currently mispriced by the market.

  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on LiveHire’s board and the CEO’s background.

  3. 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.