Camplify Holdings Limited's (ASX:CHL) Profit Outlook

Camplify Holdings Limited (ASX:CHL) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Camplify Holdings Limited, together with its subsidiaries, operates peer-to-peer digital marketplace platforms to connect recreational vehicle (RV) owners to hirers in Australia, New Zealand, the United Kingdom, Spain, Germany, Austria, and the Netherlands. On 30 June 2024, the AU$67m market-cap company posted a loss of AU$8.1m for its most recent financial year. Many investors are wondering about the rate at which Camplify Holdings 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.

Check out our latest analysis for Camplify Holdings

Camplify Holdings is bordering on breakeven, according to the 3 Australian Transportation analysts. They expect the company to post a final loss in 2025, before turning a profit of AU$1.5m in 2026. Therefore, the company is expected to breakeven roughly 2 years from now. 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 108%, 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 Camplify Holdings' upcoming projects, 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.

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 0.1% 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 Camplify Holdings to cover in one brief article, but the key fundamentals for the company can all be found in one place – Camplify Holdings' company page on Simply Wall St. We've also put together a list of relevant factors you should further research:

1. Valuation: What is Camplify 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 Camplify 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 Camplify 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.

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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.