Camplify Holdings Limited's (ASX:CHL) Shift From Loss To Profit

We feel now is a pretty good time to analyse Camplify Holdings Limited's (ASX:CHL) business as it appears the company may be on the cusp of a considerable accomplishment. Camplify Holdings Limited engages in the operation of peer-to-peer digital marketplace platforms to connect recreational vehicle (RV) owners to hirers in Australia, New Zealand, the United Kingdom, Spain, Germany, Netherlands, and Austria. With the latest financial year loss of AU$3.6m and a trailing-twelve-month loss of AU$3.3m, the AU$88m market-cap company alleviated its loss by moving closer towards its target of breakeven. 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?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for Camplify Holdings

Camplify Holdings is bordering on breakeven, according to the 3 Australian Transportation analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of AU$863k in 2025. The company is therefore projected to breakeven just over a year 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 99%, which signals high confidence from analysts. 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 Camplify Holdings given that this is a high-level summary, but, 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 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 key fundamentals of Camplify 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 Camplify Holdings, take a look at Camplify Holdings' company page on Simply Wall St. We've also compiled a list of key aspects you should look at:

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.