Yahoo Finance How Do Analysts See Gale Pacific Limited (ASX:GAP) Performing In The Year Ahead?
Looking at Gale Pacific Limited’s (ASX:GAP) earnings update in June 2018, analyst consensus outlook appear cautiously optimistic, with earnings expected to grow by 8.1% in the upcoming year relative to the past 5-year average growth rate of -18.7%. With trailing-twelve-month net income at current levels of AU$9.8m, we should see this rise to AU$10.6m in 2019. Below is a brief commentary on the longer term outlook the market has for Gale Pacific. For those interested in more of an analysis of the company, you can research its fundamentals here.
View our latest analysis for Gale Pacific
Can we expect Gale Pacific to keep growing?
The view from 1 analysts over the next three years is one of positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To get an idea of the overall earnings growth trend for GAP, 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.
This results in an annual growth rate of 14.2% based on the most recent earnings level of AU$9.8m to the final forecast of AU$14.8m by 2021. EPS reaches A$0.052 in the final year of forecast compared to the current A$0.033 EPS today. The primary reason for earnings growth is due to cost cutting activities, as revenues is expected to grow much slower than earnings. Margins is currently sitting at 6.1%, which is expected to expand to 7.3% by 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Gale Pacific, there are three pertinent 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 Gale Pacific 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 Gale Pacific is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Gale Pacific? 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.
