Yahoo Finance What Should We Expect From Tassal Group Limited's (ASX:TGR) Earnings In The Year Ahead?
In December 2018, Tassal Group Limited (ASX:TGR) released its earnings update. Generally, analysts seem cautiously optimistic, as a 9.7% increase in profits is expected in the upcoming year, relative to the past 5-year average growth rate of 8.0%. By 2020, we can expect Tassal Group’s bottom line to reach AU$63m, a jump from the current trailing-twelve-month of AU$57m. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Tassal Group in the longer term. For those interested in more of an analysis of the company, you can research its fundamentals here.
Check out our latest analysis for Tassal Group
How is Tassal Group going to perform in the near future?
The longer term view from the 5 analysts covering TGR is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of TGR's earnings growth over these next few years.
This results in an annual growth rate of 12% based on the most recent earnings level of AU$57m to the final forecast of AU$79m by 2022. This leads to an EPS of A$0.43 in the final year of projections relative to the current EPS of A$0.33. In 2022, TGR's profit margin will have expanded from 11% to 12%.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Tassal Group, I've put together three essential factors you should further research:
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 Tassal 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 Tassal Group is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Tassal 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!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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.
