We feel now is a pretty good time to analyse Mad Paws Holdings Limited's (ASX:MPA) business as it appears the company may be on the cusp of a considerable accomplishment. Mad Paws Holdings Limited operates a pet care services online marketplace in Australia. The AU$45m market-cap company announced a latest loss of AU$10m on 30 June 2022 for its most recent financial year result. The most pressing concern for investors is Mad Paws Holdings' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for Mad Paws Holdings

According to some industry analysts covering Mad Paws Holdings, breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of AU$2.8m in 2024. The company is therefore projected to breakeven around 2 years from today. 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 111%, which is rather optimistic! 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 Mad Paws Holdings given that this is a high-level summary, but, keep in mind that typically 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 0.9% 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 Mad Paws 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 Mad Paws Holdings, take a look at Mad Paws Holdings' company page on Simply Wall St. We've also put together a list of pertinent factors you should further research:

1. Valuation: What is Mad Paws 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 Mad Paws Holdings is currently mispriced by the market.

2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Mad Paws Holdings’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.

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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