Looking at Portland General Electric Company’s (NYSE:POR) earnings update in March 2019, it seems that analyst expectations are fairly bearish, with earnings expected to grow by 0.6% in the upcoming year compared with the higher past 5-year average growth rate of 6.3%. Currently with trailing-twelve-month earnings of US$212m, we can expect this to reach US$213m by 2020. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for Portland General Electric in the longer term. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
Can we expect Portland General Electric to keep growing?
The 8 analysts covering POR view its longer term outlook with a positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To understand the overall trajectory of POR’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 3.6% based on the most recent earnings level of US$212m to the final forecast of US$232m by 2022. This leads to an EPS of $2.72 in the final year of projections relative to the current EPS of $2.38. Margins are currently sitting at 11%, which is expected to expand to 11% by 2022.
Future outlook is only one aspect when you’re building an investment case for a stock. For Portland General Electric, I’ve compiled three pertinent 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 Portland General Electric 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 Portland General Electric is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Portland General Electric? 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 email@example.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.