We feel now is a pretty good time to analyse Pagaya Technologies Ltd.'s (NASDAQ:PGY) business as it appears the company may be on the cusp of a considerable accomplishment. Pagaya Technologies Ltd., a product-focused technology company, deploys data science and proprietary artificial intelligence-powered technology for financial institutions and investors in the United States, Israel, the Cayman Islands, and internationally. The company's loss has recently broadened since it announced a US$128m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$178m, moving it further away from breakeven. As path to profitability is the topic on Pagaya Technologies' 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.

Consensus from 9 of the American Software analysts is that Pagaya Technologies is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$36m in 2025. The company is therefore projected to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 115% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won't go into details of Pagaya Technologies' upcoming projects, though, keep in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there's one issue worth mentioning. Pagaya Technologies currently has a debt-to-equity ratio of 106%. Generally, the rule of thumb is debt shouldn't exceed 40% of your equity, and the company has considerably exceeded this. Note that a higher debt obligation increases the risk around investing in the loss-making company.

Next Steps:

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

1. Valuation: What is Pagaya Technologies 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 Pagaya Technologies 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 Pagaya Technologies'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.