Harmoney Corp Limited (ASX:HMY): When will breakeven be reached?
Harmoney Corp Limited (ASX:HMY) may be on the verge of great success in his business, so we’d like to shed some light on the company. Harmoney Corp Limited offers unsecured online personal loans in Australia and New Zealand. The A$66 million market capitalization company announced a loss of NZ$20 million on its latest full year results on 30 June 2022. Investors’ top concern is Harmoney’s path to profitability – when will it break even? Below we provide a general summary of what industry analysts expect from the company.
Check out our latest analysis for Harmoney
According to the two Australian consumer finance analysts, Harmoney is close to breaking even. They expect the company to post a definitive loss in 2024 before posting a profit of NZ$8.5 million in 2025. Therefore, the company is expected to break even in about 3 years from now. How fast does the company need to grow each year to break even by 2025? Going back from analyst estimates, it turns out that they expect the company to grow an average of 80% year over year, which is extremely brisk. If this price proves too aggressive, the company may become profitable much later than analysts are predicting.
As this is a high-level overview, we won’t go into detail on Harmoney’s upcoming projects, but keep in mind that a high growth rate is usually not uncommon, especially when a company is in an investment phase.
Before we wrap up, there is one issue worth noting. Harmoney currently has a debt to equity ratio of over 2x. In general, the rule of thumb is that debt shouldn’t exceed 40% of your equity, and the company has exceeded that significantly. Higher debt requires tighter capital management, increasing the risk of investing in the loss-making company.
There are too many aspects of Harmoney to cover in one short article, but the company’s key fundamentals can all be found in one place – the Harmoney corporate page on Simply Wall Street. We’ve also compiled a list of important aspects to consider further in your research:
Historical track record: How has Harmoney performed in the past? Dive deeper into the analysis of past track records and check out the free visuals of our analysis for more clarity.
Leadership team: An experienced management team at the helm strengthens our confidence in the company – look at who sits on Harmoney’s board and the background of the CEO.
Other high-performing stocks: Are there other stocks that offer better prospects with a proven track record? Explore our free list of these great stocks here.
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This Simply Wall St article is of a general nature. We provide comments based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock and does not take into account your goals or financial situation. Our goal is to offer you long-term focused analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
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