Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
HyreCar Inc.'s (NASDAQ:HYRE): HyreCar Inc. operates a Web-based car-sharing marketplace in the United States. The US$57m market-cap company’s loss lessens since it announced a -US$11.2m bottom-line in the full financial year, compared to the latest trailing-twelve-month loss of -US$11.2m, as it approaches breakeven. As path to profitability is the topic on HYRE’s investors mind, I’ve decided to gauge market sentiment. In this article, I will touch on the expectations for HYRE’s growth and when analysts expect the company to become profitable.
HYRE is bordering on breakeven, according to the 3 Consumer Services analysts. They anticipate the company to incur a final loss in 2020, before generating positive profits of US$1.2m in 2021. Therefore, HYRE is expected to breakeven roughly 2 years from today. In order to meet this breakeven date, I calculated the rate at which HYRE must grow year-on-year. It turns out an average annual growth rate of 69% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving HYRE’s growth isn’t the focus of this broad overview, 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.
Before I wrap up, there’s one aspect worth mentioning. HYRE currently has no debt on its balance sheet, which is quite unusual for a cash-burning loss-making, growth company, which usually has a high level of debt relative to its equity. HYRE currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
This article is not intended to be a comprehensive analysis on HYRE, so if you are interested in understanding the company at a deeper level, take a look at HYRE’s company page on Simply Wall St. I’ve also compiled a list of important factors you should further research:
- Valuation: What is HYRE 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 HYRE is currently mispriced by the market.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on HyreCar’s board and the CEO’s back ground.
- 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.