BuildDirect.com Technologies Inc. (CVE:BILD): Are Analysts Optimistic?

With the business potentially at an important milestone, we thought we'd take a closer look at BuildDirect.com Technologies Inc.'s (CVE:BILD) future prospects. BuildDirect.com Technologies Inc. operates a marketplace for purchasing and selling building materials online in the United States, Canada, and internationally. The CA$17m market-cap company’s loss lessened since it announced a US$3.8m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$3.6m, as it approaches breakeven. The most pressing concern for investors is BuildDirect.com Technologies' path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Check out our latest analysis for BuildDirect.com Technologies

BuildDirect.com Technologies is bordering on breakeven, according to some Canadian Specialty Retail analysts. They expect the company to post a final loss in 2024, before turning a profit of US$2.7m in 2025. The company is therefore projected to breakeven just over a year 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 187%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of BuildDirect.com Technologies' upcoming projects, however, take into account that generally 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 issue worth mentioning. BuildDirect.com Technologies currently has a debt-to-equity ratio of over 2x. Typically, debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

There are key fundamentals of BuildDirect.com Technologies 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 BuildDirect.com Technologies, take a look at BuildDirect.com Technologies' company page on Simply Wall St. We've also compiled a list of essential factors you should further research:

1. Valuation: What is BuildDirect.com Technologies 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 BuildDirect.com Technologies 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 BuildDirect.com Technologies’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.