Raiz Invest Limited (ASX:RZI): Are Analysts Optimistic?

Raiz Invest Limited (ASX:RZI) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Raiz Invest Limited provides financial services and products through its mobile micro-investing platform in Australia, Indonesia, and Malaysia. On 30 June 2023, the AU$36m market-cap company posted a loss of AU$6.9m for its most recent financial year. As path to profitability is the topic on Raiz Invest's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

Check out our latest analysis for Raiz Invest

Expectations from some of the Australian Capital Markets analysts is that Raiz Invest is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of AU$2.4m in 2025. So, the company is predicted to breakeven just over a year from now. 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 75% 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 Raiz Invest given that this is a high-level summary, but, take into account 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. Raiz Invest currently 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. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of Raiz Invest to cover in one brief article, but the key fundamentals for the company can all be found in one place – Raiz Invest's company page on Simply Wall St. We've also put together a list of essential aspects you should look at:

1. Historical Track Record: What has Raiz Invest'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 Raiz Invest'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.