Yahoo Movies Pointerra Limited (ASX:3DP): Is Breakeven Near?
With the business potentially at an important milestone, we thought we'd take a closer look at Pointerra Limited's (ASX:3DP) future prospects. Pointerra Limited provides a cloud-based solution for managing, visualizing, working in, analyzing, and sharing 3D datasets in the Australasian and North American regions. The company’s loss has recently broadened since it announced a AU$1.5m loss in the full financial year, compared to the latest trailing-twelve-month loss of AU$2.9m, moving it further away from breakeven. The most pressing concern for investors is Pointerra's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Check out our latest analysis for Pointerra
Pointerra is bordering on breakeven, according to some Australian Software analysts. They anticipate the company to incur a final loss in 2022, before generating positive profits of AU$18m in 2023. Therefore, the company is expected 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 170%, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
We're not going to go through company-specific developments for Pointerra given that this is a high-level summary, but, bear in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 0.6% 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 Pointerra 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 Pointerra, take a look at Pointerra's company page on Simply Wall St. We've also put together a list of key factors you should further research:
Valuation: What is Pointerra 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 Pointerra 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 Pointerra’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.
