With the business potentially at an important milestone, we thought we'd take a closer look at Yojee Limited's (ASX:YOJ) future prospects. Yojee Limited operates a cloud-based software as a service (SaaS) logistics platform that facilitates the flow of freight movements into a single ecosystem in the Asia-Pacific region. The AU$44m market-cap company announced a latest loss of AU$8.5m on 30 June 2022 for its most recent financial year result. Many investors are wondering about the rate at which Yojee will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
Yojee is bordering on breakeven, according to some Australian Software analysts. They anticipate the company to incur a final loss in 2023, before generating positive profits of AU$11m in 2024. So, the company is predicted to breakeven just over a year 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 97%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, we won’t go into details of Yojee's upcoming projects, though, bear in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
Before we wrap up, there’s one aspect worth mentioning. Yojee currently has no debt on its balance sheet, which is quite unusual for a cash-burning 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 important factors you should look at:
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.
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