Yahoo Finance Breakeven On The Horizon For Pointerra Limited (ASX:3DP)
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 develops and commercializes an end-to-end data as a service solution for managing, visualizing, working in, analyzing, and sharing 3D datasets in the United States, Australia, and internationally. The AU$315m market-cap company’s loss lessened since it announced a AU$2.5m loss in the full financial year, compared to the latest trailing-twelve-month loss of AU$2.2m, as it approaches breakeven. As path to profitability is the topic on Pointerra'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 Pointerra
According to some industry analysts covering Pointerra, breakeven is near. They anticipate the company to incur a final loss in 2021, before generating positive profits of AU$4.5m in 2022. 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 184%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, we won’t go into details of Pointerra's upcoming projects, but, bear in mind that generally 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 Pointerra has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
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 aspects you should further examine:
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.
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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