Analysts Are Optimistic We'll See A Profit From Hipages Group Holdings Limited (ASX:HPG)

With the business potentially at an important milestone, we thought we'd take a closer look at Hipages Group Holdings Limited's (ASX:HPG) future prospects. Hipages Group Holdings Limited, together with its subsidiaries, operates as an online tradie marketplace and software as a service (SaaS) provider in Australia and New Zealand. The AU$97m market-cap company announced a latest loss of AU$5.1m on 30 June 2023 for its most recent financial year result. As path to profitability is the topic on Hipages Group Holdings' 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.

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 anticipate the company to incur a final loss in 2023, before generating positive profits of AU$1.0m in 2024. The company is therefore projected to breakeven around 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 56% year-on-year, on average, 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 Hipages Group Holdings given that this is a high-level summary, however, keep in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

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:

There are too many aspects of Hipages Group Holdings to cover in one brief article, but the key fundamentals for the company can all be found in one place – Hipages Group Holdings' company page on Simply Wall St. We've also compiled a list of key aspects you should further examine:

1. 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.
2. 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.
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.