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We feel now is a pretty good time to analyse Camplify Holdings Limited's (ASX:CHL) business as it appears the company may be on the cusp of a considerable accomplishment. Camplify Holdings Limited, together with its subsidiaries, operates peer-to-peer digital marketplace platforms to connect recreational vehicle (RV) owners to hirers in Australia, New Zealand, the United Kingdom, Spain, Germany, Austria, and the Netherlands. On 30 June 2024, the AU$54m market-cap company posted a loss of AU$8.1m for its most recent financial year. The most pressing concern for investors is Camplify Holdings' path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
View our latest analysis for Camplify Holdings
Camplify Holdings is bordering on breakeven, according to the 3 Australian Transportation analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of AU$985k in 2026. The company is therefore projected to breakeven around 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 106% is expected, which is rather optimistic! 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 Camplify Holdings given that this is a high-level summary, but, keep in mind that by and large 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. The company has managed its capital prudently, with debt making up 0.1% of equity. This means that it 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:
There are key fundamentals of Camplify Holdings 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 Camplify Holdings, take a look at Camplify Holdings' company page on Simply Wall St. We've also compiled a list of essential factors you should look at:
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Valuation: What is Camplify 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 Camplify Holdings is currently mispriced by the market.
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Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Camplify Holdings’s board and the CEO’s background.
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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.
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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.