Yahoo Finance Market Sentiment Around Loss-Making Wisr Limited (ASX:WZR)
Wisr Limited's (ASX:WZR): Wisr Limited engages in the lending business in Australia. The AU$124m market-cap company announced a latest loss of -AU$7.7m on 30 June 2019 for its most recent financial year result. The most pressing concern for investors is WZR’s path to profitability – when will it breakeven? Below I will provide a high-level summary of the industry analysts’ expectations for WZR.
Check out our latest analysis for Wisr
Consensus from the 3 Consumer Finance analysts is WZR is on the verge of breakeven. They anticipate the company to incur a final loss in 2021, before generating positive profits of AU$2.0m in 2022. Therefore, WZR is expected to breakeven roughly 3 years from now. How fast will WZR have to grow each year in order to reach the breakeven point by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 76% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, WZR may become profitable much later than analysts predict.
I’m not going to go through company-specific developments for WZR given that this is a high-level summary, but, take into account that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing I’d like to point out is that WZR has managed its capital prudently, with debt making up 12% of equity. This means that WZR 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 WZR, so if you are interested in understanding the company at a deeper level, take a look at WZR’s company page on Simply Wall St. I’ve also put together a list of key aspects you should further research:
Historical Track Record: What has WZR'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 Wisr’s board and the CEO’s back ground.
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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
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