Yahoo Finance Pureprofile Ltd (ASX:PPL) Is Expected To Breakeven In The Near Future
With the business potentially at an important milestone, we thought we'd take a closer look at Pureprofile Ltd's (ASX:PPL) future prospects. Pureprofile Ltd provides profile marketing and insights technology services for marketers, researchers, and publishers in Australia and internationally. The AU$2.8m market-cap company announced a latest loss of AU$9.6m on 30 June 2020 for its most recent financial year result. As path to profitability is the topic on Pureprofile's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
Check out our latest analysis for Pureprofile
Expectations from some of the Australian Media analysts is that Pureprofile is on the verge of breakeven. They anticipate the company to incur a final loss in 2021, before generating positive profits of AU$1.9m in 2022. Therefore, the company is expected to breakeven roughly 2 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 63% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
We're not going to go through company-specific developments for Pureprofile given that this is a high-level summary, but, keep in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing we would like to bring into light with Pureprofile is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. These losses tend to occur only on paper, however, in other cases it can be forewarning.
Next Steps:
There are key fundamentals of Pureprofile 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 Pureprofile, take a look at Pureprofile's company page on Simply Wall St. We've also put together a list of relevant factors you should further examine:
Valuation: What is Pureprofile 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 Pureprofile 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 Pureprofile’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. 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.
