Yahoo Finance What Do Analysts Think About IDP Education Limited's (ASX:IEL) Growth?
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After IDP Education Limited's (ASX:IEL) earnings announcement in December 2018, the consensus outlook from analysts appear fairly confident, as a 23% increase in profits is expected in the upcoming year, against the past 5-year average growth rate of 16%. Presently, with latest-twelve-month earnings at AU$52m, we should see this growing to AU$64m by 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for IDP Education in the longer term. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
Check out our latest analysis for IDP Education
What can we expect from IDP Education in the longer term?
Over the next three years, it seems the consensus view of the 6 analysts covering IEL 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 reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.
From the current net income level of AU$52m and the final forecast of AU$97m by 2022, the annual rate of growth for IEL’s earnings is 21%. EPS reaches A$0.46 in the final year of forecast compared to the current A$0.21 EPS today. With a current profit margin of 11%, this movement will result in a margin of 12% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For IDP Education, I've compiled three key factors 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 IDP Education 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 IDP Education is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of IDP Education? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
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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. Thank you for reading.
