Yahoo Finance RPMGlobal Holdings Limited (ASX:RUL): Is Breakeven Near?
We feel now is a pretty good time to analyse RPMGlobal Holdings Limited's (ASX:RUL) business as it appears the company may be on the cusp of a considerable accomplishment. RPMGlobal Holdings Limited develops and provides mining software solutions in Australia, Asia, the Americas, Africa, and Europe. The AU$363m market-cap company’s loss lessened since it announced a AU$2.3m loss in the full financial year, compared to the latest trailing-twelve-month loss of AU$830k, as it approaches breakeven. The most pressing concern for investors is RPMGlobal Holdings' path to profitability – when will it breakeven? 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 RPMGlobal Holdings
According to some industry analysts covering RPMGlobal Holdings, breakeven is near. They anticipate the company to incur a final loss in 2022, before generating positive profits of AU$3.0m in 2023. The company is therefore projected to breakeven just over a year from today. 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 80% 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.
Underlying developments driving RPMGlobal Holdings' growth isn’t the focus of this broad overview, however, bear 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’d like to point out is that RPMGlobal Holdings has no debt on its balance sheet, which is rare for a loss-making growth company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
Next Steps:
This article is not intended to be a comprehensive analysis on RPMGlobal Holdings, so if you are interested in understanding the company at a deeper level, take a look at RPMGlobal Holdings' company page on Simply Wall St. We've also compiled a list of essential factors you should further examine:
Valuation: What is RPMGlobal 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 RPMGlobal 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 RPMGlobal 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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
