How Do Analysts See Mortgage Advice Bureau (Holdings) PLC (LON:MAB1) Performing Over The Next Year?

As Mortgage Advice Bureau (Holdings) PLC (LON:MAB1) announced its earnings release on 31 December 2018, it seems that analyst expectations are fairly bearish, as a 14% rise in profits is expected in the upcoming year, compared with the higher past 5-year average growth rate of 23%. With trailing-twelve-month net income at current levels of UK£13m, we should see this rise to UK£15m in 2020. Below is a brief commentary around Mortgage Advice Bureau (Holdings)’s earnings outlook going forward, which may give you a sense of market sentiment for the company. For those interested in more of an analysis of the company, you can research its fundamentals here.

See our latest analysis for Mortgage Advice Bureau (Holdings)

Can we expect Mortgage Advice Bureau (Holdings) to keep growing?

The longer term expectations from the 1 analysts of MAB1 is tilted towards the positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. 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 MAB1’s earnings growth over these next few years.

AIM:MAB1 Past and Future Earnings, March 31st 2019
AIM:MAB1 Past and Future Earnings, March 31st 2019

By 2022, MAB1’s earnings should reach UK£20m, from current levels of UK£13m, resulting in an annual growth rate of 15%. This leads to an EPS of £0.38 in the final year of projections relative to the current EPS of £0.26. Margins are currently sitting at 11%, approximately the same as previous years. With analysts forecasting revenue growth of 0.52992 and MAB1’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 Mortgage Advice Bureau (Holdings), I’ve compiled three important aspects you should further research:

  1. 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.
  2. Valuation: What is Mortgage Advice Bureau (Holdings) 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 Mortgage Advice Bureau (Holdings) is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Mortgage Advice Bureau (Holdings)? 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.