Pushpay Holdings Limited's (NZSE:PPH): Pushpay Holdings Limited provides engagement and payment solutions to the faith sector, not-for-profit organizations, and education providers. The US$1.14b market-cap company announced a latest loss of -US$23.27m on 31 March 2018 for its most recent financial year result. As path to profitability is the topic on PPH’s investors mind, I’ve decided to gauge market sentiment. I’ve put together a brief outline of industry analyst expectations for PPH, its year of breakeven and its implied growth rate.
See our latest analysis for Pushpay Holdings
PPH is bordering on breakeven, according to Software analysts. They anticipate the company to incur a final loss in 2019, before generating positive profits of US$16.50m in 2020. PPH is therefore projected to breakeven around a couple of months from now! In order to meet this breakeven date, I calculated the rate at which PPH must grow year-on-year. It turns out an average annual growth rate of 131.69% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, PPH may become profitable much later than analysts predict.
Underlying developments driving PPH’s growth isn’t the focus of this broad overview, 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.
Before I wrap up, there’s one aspect worth mentioning. PPH has managed its capital judiciously, with debt making up 3.44% of equity. This means that PPH 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:
This article is not intended to be a comprehensive analysis on PPH, so if you are interested in understanding the company at a deeper level, take a look at PPH’s company page on Simply Wall St. I’ve also put together a list of key aspects you should further examine:
- Valuation: What is PPH 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 PPH is currently mispriced by the market.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Pushpay Holdings’s board and the CEO’s back ground.
- 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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The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article 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.