Yahoo Finance What Should Investors Know About OFX Group Limited's (ASX:OFX) Growth?
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Based on OFX Group Limited's (ASX:OFX) earnings update in March 2019, analyst consensus outlook appear cautiously optimistic, with profits predicted to increase by 22% next year compared with the past 5-year average growth rate of -1.9%. By 2020, we can expect OFX Group’s bottom line to reach AU$21m, a jump from the current trailing-twelve-month of AU$18m. Below is a brief commentary around OFX Group's earnings outlook going forward, which may give you a sense of market sentiment for the company. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
See our latest analysis for OFX Group
Can we expect OFX Group to keep growing?
The 4 analysts covering OFX view its longer term outlook with a 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 understand the overall trajectory of OFX's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
This results in an annual growth rate of 10% based on the most recent earnings level of AU$18m to the final forecast of AU$25m by 2022. EPS reaches A$0.10 in the final year of forecast compared to the current A$0.073 EPS today. Margins are currently sitting at 14%, which is expected to expand to 17% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For OFX Group, there are three relevant 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 OFX 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 OFX Group is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of OFX 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.
