When Will RMA Global Limited (ASX:RMY) Turn A Profit?

With the business potentially at an important milestone, we thought we'd take a closer look at RMA Global Limited's (ASX:RMY) future prospects. RMA Global Limited, an online digital marketing company, provides data on real estate in Australia, New Zealand, and the United States. The AU$35m market-cap company announced a latest loss of AU$4.9m on 30 June 2023 for its most recent financial year result. As path to profitability is the topic on RMA Global's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

View our latest analysis for RMA Global

RMA Global is bordering on breakeven, according to some Australian Interactive Media and Services analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of AU$2.5m in 2026. Therefore, the company is expected to breakeven roughly 3 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 88% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for RMA Global given that this is a high-level summary, though, keep in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one aspect worth mentioning. RMA Global currently 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. 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:

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

1. Valuation: What is RMA Global 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 RMA Global 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 RMA Global’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.