Mad Paws Holdings Limited (ASX:MPA) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Mad Paws Holdings Limited operates pet care services online marketplace in Australia. The AU$52m market-cap company announced a latest loss of AU$10m on 30 June 2022 for its most recent financial year result. As path to profitability is the topic on Mad Paws Holdings' investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
See our latest analysis for Mad Paws Holdings
Mad Paws Holdings is bordering on breakeven, according to some Australian Consumer Services analysts. They anticipate the company to incur a final loss in 2023, before generating positive profits of AU$100k in 2024. So, the company is predicted 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 101%, 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 Mad Paws Holdings' upcoming projects, though, bear in mind that by and large 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 judiciously, with debt making up 0.9% 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.
There are key fundamentals of Mad Paws 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 Mad Paws Holdings, take a look at Mad Paws Holdings' company page on Simply Wall St. We've also put together a list of key factors you should further research:
Valuation: What is Mad Paws 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 Mad Paws Holdings 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 Mad Paws Holdings's board and the CEO's background.
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.
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