PropertyGuru Group Limited (NYSE:PGRU) Is Expected To Breakeven In The Near Future

With the business potentially at an important milestone, we thought we'd take a closer look at PropertyGuru Group Limited's (NYSE:PGRU) future prospects. PropertyGuru Group Limited operates digital property classifieds marketplaces that connects homeowners and tenants with verified home service providers in Singapore, Vietnam, Malaysia, Thailand, and Indonesia. The US$726m market-cap company announced a latest loss of S$129m on 31 December 2022 for its most recent financial year result. As path to profitability is the topic on PropertyGuru Group'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.

View our latest analysis for PropertyGuru Group

PropertyGuru Group is bordering on breakeven, according to the 7 American Interactive Media and Services analysts. They anticipate the company to incur a final loss in 2023, before generating positive profits of S$2.0m in 2024. The company is therefore projected 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 98%, which signals high confidence from analysts. 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 PropertyGuru Group 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.

One thing we’d like to point out is that PropertyGuru Group has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which usually has a high level of 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 PropertyGuru Group to cover in one brief article, but the key fundamentals for the company can all be found in one place – PropertyGuru Group's company page on Simply Wall St. We've also compiled a list of key aspects you should further examine:

1. Valuation: What is PropertyGuru Group 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 PropertyGuru Group 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 PropertyGuru 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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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