Advertisement
U.S. markets closed
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • Dow 30

    39,807.37
    +47.29 (+0.12%)
     
  • Nasdaq

    16,379.46
    -20.06 (-0.12%)
     
  • Russell 2000

    2,124.55
    +10.20 (+0.48%)
     
  • Crude Oil

    83.11
    -0.06 (-0.07%)
     
  • Gold

    2,254.80
    +16.40 (+0.73%)
     
  • Silver

    25.10
    +0.18 (+0.74%)
     
  • EUR/USD

    1.0791
    -0.0002 (-0.02%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • GBP/USD

    1.2615
    -0.0007 (-0.05%)
     
  • USD/JPY

    151.3410
    -0.0310 (-0.02%)
     
  • Bitcoin USD

    70,182.05
    -447.16 (-0.63%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • Nikkei 225

    40,369.44
    +201.37 (+0.50%)
     

RMA Global Limited's (ASX:RMY) Profit Outlook

RMA Global Limited's (ASX:RMY): RMA Global Limited, an online digital marketing company, provides data on real estate. On 30 June 2019, the AU$140m market-cap posted a loss of -AU$7.2m for its most recent financial year. The most pressing concern for investors is RMY’s path to profitability – when will it breakeven? Below I will provide a high-level summary of the industry analysts’ expectations for RMY.

View our latest analysis for RMA Global

Expectation from Interactive Media and Services analysts is RMY is on the verge of breakeven. They expect the company to post a final loss in 2021, before turning a profit of AU$1.5m in 2022. RMY is therefore projected to breakeven around 3 years from today. What rate will RMY have to grow year-on-year in order to breakeven on this date? Using a line of best fit, I calculated an average annual growth rate of 56%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

ASX:RMY Past and Future Earnings, December 16th 2019
ASX:RMY Past and Future Earnings, December 16th 2019

Underlying developments driving RMY’s growth isn’t the focus of this broad overview, but, bear in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before I wrap up, there’s one aspect worth mentioning. RMY currently has no debt on its balance sheet, which is rare for a loss-making loss-making, growth company, which usually has a high level of debt relative to its equity. RMY currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

This article is not intended to be a comprehensive analysis on RMY, so if you are interested in understanding the company at a deeper level, take a look at RMY’s company page on Simply Wall St. I’ve also compiled a list of pertinent aspects you should further research:

  1. Historical Track Record: What has RMY'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 RMA Global’s board and the CEO’s back ground.

  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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.

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. Thank you for reading.

Advertisement