HyreCar Inc. (NASDAQ:HYRE): When Will It Breakeven?

We feel now is a pretty good time to analyse HyreCar Inc.'s (NASDAQ:HYRE) business as it appears the company may be on the cusp of a considerable accomplishment. HyreCar Inc., together with subsidiaries, operates a web-based car-sharing marketplace in the United States. The company’s loss has recently broadened since it announced a US$13m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$15m, moving it further away from breakeven. As path to profitability is the topic on HyreCar's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for HyreCar

According to the 4 industry analysts covering HyreCar, the consensus is that breakeven is near. They expect the company to post a final loss in 2021, before turning a profit of US$8.1m in 2022. Therefore, the company is expected to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 117% year-on-year, on average, which is rather optimistic! 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 HyreCar given that this is a high-level summary, though, 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. HyreCar currently has a debt-to-equity ratio of over 2x. Typically, debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

There are too many aspects of HyreCar to cover in one brief article, but the key fundamentals for the company can all be found in one place – HyreCar's company page on Simply Wall St. We've also put together a list of relevant factors you should look at:

1. Historical Track Record: What has HyreCar's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on HyreCar'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. 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.
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