Yahoo Finance Regis Healthcare Limited (ASX:REG): Poised For Long Term Success?
Based on Regis Healthcare Limited's (ASX:REG) earnings update in December 2018, analysts seem cautiously bearish, with profits predicted to rise by -0.4% next year relative to the higher past 5-year average growth rate of 21%. Currently with trailing-twelve-month earnings of AU$54m, we can expect this to reach AU$54m by 2020. Below is a brief commentary on the longer term outlook the market has for Regis Healthcare. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
See our latest analysis for Regis Healthcare
How is Regis Healthcare going to perform in the near future?
The view from 6 analysts over the next three years is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. 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$54m and the final forecast of AU$66m by 2022, the annual rate of growth for REG’s earnings is 8.8%. This leads to an EPS of A$0.21 in the final year of projections relative to the current EPS of A$0.18. Margins are currently sitting at 9.1%, approximately the same as previous years. With analysts forecasting revenue growth of 0.23511 and REG's net income growth expected to roughly track that, this company may add value for shareholders over time.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Regis Healthcare, there are three key aspects 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 Regis Healthcare 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 Regis Healthcare is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Regis Healthcare? 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.
