Yahoo Finance How Do Analysts See AUB Group Limited (ASX:AUB) Performing Over The Next Year?
Looking at AUB Group Limited’s (ASX:AUB) earnings update in June 2018, analyst consensus outlook appear cautiously subdued, as a 0.7% rise in profits is expected in the upcoming year, against the higher past 5-year average growth rate of 3.9%. With trailing-twelve-month net income at current levels of AU$47m, we should see this rise to AU$47m in 2019. Below is a brief commentary around AUB Group’s earnings outlook going forward, which may give you a sense of market sentiment for the company. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
Check out our latest analysis for AUB Group
How will AUB Group perform in the near future?
Over the next three years, it seems the consensus view of the 5 analysts covering AUB is skewed towards the positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To get an idea of the overall earnings growth trend for AUB, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
By 2021, AUB’s earnings should reach AU$55m, from current levels of AU$47m, resulting in an annual growth rate of 6.6%. This leads to an EPS of A$0.74 in the final year of projections relative to the current EPS of A$0.73. Margins are currently sitting at 17%, which is expected to expand to 19% by 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For AUB Group, there are three essential aspects you should look at:
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 AUB Group 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 AUB Group is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of AUB Group? 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.
