Yojee Limited (ASX:YOJ) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Yojee Limited operates a cloud-based software as a service (SaaS) logistics platform in the Asia-Pacific region. The AU$86m market-cap company’s loss lessened since it announced a AU$11m loss in the full financial year, compared to the latest trailing-twelve-month loss of AU$9.0m, as it approaches breakeven. As path to profitability is the topic on Yojee'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.
According to some industry analysts covering Yojee, breakeven is near. They expect the company to post a final loss in 2023, before turning a profit of AU$11m in 2024. So, the company is predicted to breakeven approximately 2 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 88%, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Underlying developments driving Yojee's growth isn’t the focus of this broad overview, but, take into account that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before we wrap up, there’s one aspect worth mentioning. Yojee currently has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of 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 Yojee, so if you are interested in understanding the company at a deeper level, take a look at Yojee's company page on Simply Wall St. We've also compiled a list of pertinent factors you should further research:
Valuation: What is Yojee 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 Yojee 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 Yojee’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