Openpay Group Ltd (ASX:OPY) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Openpay Group Ltd provides Buy Now Pay Later (BNPL) payment solutions in Australia, New Zealand, the United Kingdom, and the United States. On 30 June 2021, the AU$125m market-cap company posted a loss of AU$63m for its most recent financial year. As path to profitability is the topic on Openpay Group's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Openpay Group

According to the 2 industry analysts covering Openpay Group, the consensus is that breakeven is near. They expect the company to post a final loss in 2023, before turning a profit of AU$1.4m in 2024. The company is therefore projected to breakeven around 3 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 61% 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.

Underlying developments driving Openpay Group's growth isn’t the focus of this broad overview, however, keep 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 issue worth mentioning. Openpay Group currently has a relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in Openpay Group's case is 79%. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

There are key fundamentals of Openpay Group 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 Openpay Group, take a look at Openpay Group's company page on Simply Wall St. We've also compiled a list of key factors you should further research:

1. Historical Track Record: What has Openpay Group's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Openpay Group's board and the CEO’s background.

3. 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.