We feel now is a pretty good time to analyse Beforepay Group Limited's (ASX:B4P) business as it appears the company may be on the cusp of a considerable accomplishment. Beforepay Group Limited engages in the provision of pay-on-demand services through mobile applications in Australia. The AU$25m market-cap company announced a latest loss of AU$6.6m on 30 June 2023 for its most recent financial year result. Many investors are wondering about the rate at which Beforepay Group will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Beforepay Group

Beforepay Group is bordering on breakeven, according to some Australian Consumer Finance analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of AU$200k in 2026. The company is therefore projected to breakeven around 2 years from today. 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 72%, which is rather optimistic! 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 Beforepay Group given that this is a high-level summary, though, take into account 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 would like to bring into light with Beforepay Group is its debt-to-equity ratio of 124%. Typically, debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. Note that a higher debt obligation increases the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of Beforepay Group to cover in one brief article, but the key fundamentals for the company can all be found in one place – Beforepay Group's company page on Simply Wall St. We've also compiled a list of key aspects you should further research:

1. Historical Track Record: What has Beforepay Group's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

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

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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.