We may soon see a profit from PEXA Group Limited (ASX: PXA)
PEXA Group Limited (ASX: PXA) Perhaps a major achievement in his business is approaching, so we would like to shed some light on the business. PEXA Group Limited operates a digital property settlement platform in Australia. On June 30, 2021, the A $ 2.8 billion market-capitalization company recorded a loss of A $ 12 million for its most recent fiscal year. As the path to profitability is the subject of concern to investors in the PEXA Group, we decided to assess market sentiment. Below, we’ll provide a high-level summary of industry analyst expectations for the company.
The PEXA group is close to equilibrium, according to the 3 Australian real estate analysts. They expect the company to make a terminal loss in 2021, before making a profit of A $ 8.8 million in 2022. Thus, the company is expected to break even in about 12 months or less. How fast will the business need to grow to achieve consensus estimates of equilibrium in less than 12 months? Using a line of best fit, we calculated an average annual growth rate of 37%, indicating a high level of analyst confidence. If this rate turns out to be too aggressive, the company could become profitable much later than analysts predict.
The developments underlying the growth of the PEXA Group are not the subject of this overview, but keep in mind that a high growth rate is usually not unusual, especially when a company is in business. investment period.
One thing we would like to highlight with PEXA Group is its relatively high level of debt. As a general rule, debt should not exceed 40% of your equity, which in the case of PEXA Group is 48%. Note that higher debt increases the risk of investing in the loss-making business.
Some core principles of the PEXA Group are not covered in this article, but we must again stress that this is only a basic overview. For a more complete overview of the PEXA Group, see PEXA Group Company Page on Simply Wall St. We’ve also compiled a list of important aspects that you should take a closer look at:
Evaluation: What is the PEXA Group worth today? Has the potential for future growth already been factored into the price? The intrinsic value infographic in our free research report helps to visualize whether PEXA Group is currently poorly valued by the market.
Management team: An experienced management team at the helm increases our confidence in the company – take a look at who sits on the board of directors of the PEXA group and the experience of the CEO.
Other high performing stocks: Are there other stocks that offer better prospects with a proven track record? Discover our free list of these great stocks here.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.
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