Analysts Expect Breakeven For Qoria Limited (ASX:QOR) Before Long

With the business potentially at an important milestone, we thought we'd take a closer look at Qoria Limited's (ASX:QOR) future prospects. Qoria Limited markets, distributes, and sells cyber safety products and services. With the latest financial year loss of AU$87m and a trailing-twelve-month loss of AU$81m, the AU$439m market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which Qoria will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

View our latest analysis for Qoria

Consensus from 6 of the Australian Software analysts is that Qoria is on the verge of breakeven. They anticipate the company to incur a final loss in 2026, before generating positive profits of AU$12m in 2027. The company is therefore projected to breakeven around 3 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 69%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of Qoria's upcoming projects, but, take into account that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 19% 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 too many aspects of Qoria to cover in one brief article, but the key fundamentals for the company can all be found in one place – Qoria's company page on Simply Wall St. We've also compiled a list of key factors you should further research:

1. Valuation: What is Qoria 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 Qoria 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 Qoria’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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com