We feel now is a pretty good time to analyse Hipages Group Holdings Limited's (ASX:HPG) business as it appears the company may be on the cusp of a considerable accomplishment. Hipages Group Holdings Limited, together with its subsidiaries, operates as an online tradie marketplace and software as a service provider in Australia and New Zealand. The company’s loss has recently broadened since it announced a AU$910k loss in the full financial year, compared to the latest trailing-twelve-month loss of AU$1.6m, moving it further away from breakeven. Many investors are wondering about the rate at which Hipages Group Holdings will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.
View our latest analysis for Hipages Group Holdings
Consensus from 4 of the Australian Interactive Media and Services analysts is that Hipages Group Holdings is on the verge of breakeven. They expect the company to post a final loss in 2023, before turning a profit of AU$705k in 2024. So, the company is predicted to breakeven just over a year 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 68% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
We're not going to go through company-specific developments for Hipages Group Holdings given that this is a high-level summary, though, bear in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing we’d like to point out is that Hipages Group 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. 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.
Next Steps:
This article is not intended to be a comprehensive analysis on Hipages Group Holdings, so if you are interested in understanding the company at a deeper level, take a look at Hipages Group Holdings' company page on Simply Wall St. We've also compiled a list of key factors you should further research:
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Valuation: What is Hipages Group 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 Hipages Group 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 Hipages Group 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.