We feel now is a pretty good time to analyse RPMGlobal Holdings Limited's (ASX:RUL) business as it appears the company may be on the cusp of a considerable accomplishment. RPMGlobal Holdings Limited develops and provides mining software solutions in Australia, Asia, the Americas, Africa, and Europe. The AU$451m market-cap company announced a latest loss of AU$2.3m on 30 June 2021 for its most recent financial year result. The most pressing concern for investors is RPMGlobal Holdings' 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 RPMGlobal Holdings

According to some industry analysts covering RPMGlobal Holdings, breakeven is near. They anticipate the company to incur a final loss in 2021, before generating positive profits of AU$3.5m in 2022. The company is therefore projected to breakeven around 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 69% is expected, which signals high confidence from analysts. 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 RPMGlobal Holdings' upcoming projects, though, bear in mind that generally 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 RPMGlobal Holdings has no debt on its balance sheet, which is rare for a loss-making growth company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on RPMGlobal Holdings, so if you are interested in understanding the company at a deeper level, take a look at RPMGlobal Holdings' company page on Simply Wall St. We've also put together a list of pertinent aspects you should further examine:

1. Valuation: What is RPMGlobal 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 RPMGlobal Holdings is currently mispriced by the market.

2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on RPMGlobal Holdings’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.

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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