Yahoo Finance What Are Analysts Saying About The Future Of Regis Healthcare Limited’s (ASX:REG)?
In June 2018, Regis Healthcare Limited (ASX:REG) released its most recent earnings announcement, which signalled that the company experienced a immense headwind with earnings falling by -12%. Today I want to provide a brief commentary on how market analysts perceive Regis Healthcare’s earnings growth trajectory over the next couple of years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.
View our latest analysis for Regis Healthcare
Analysts’ outlook for the upcoming year seems pessimistic, with earnings falling by -6.3%. But in the following year, there is a complete contrast in performance, with generating double digit 7.4% compared to today’s level and continues to increase to AU$65m in 2021.
While it’s helpful to be aware of the growth rate each year relative to today’s figure, it may be more insightful determining the rate at which the company is rising or falling on average every year. The benefit of this method is that it ignores near term flucuations and accounts for the overarching direction of Regis Healthcare’s earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I’ve appended a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 7.5%. This means, we can anticipate Regis Healthcare will grow its earnings by 7.5% every year for the next couple of years.
Next Steps:
For Regis Healthcare, there are three important factors you should further examine:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is REG worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether REG is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of REG? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.