Georgia Healthcare Group PLC (LON:GHG): Are Analysts Bullish?

In December 2017, Georgia Healthcare Group PLC (LSE:GHG) announced its latest earnings update, which signalled that the business endured a immense headwind with earnings deteriorating by -42.13%. Investors may find it useful to understand how market analysts perceive Georgia Healthcare Group’s earnings growth outlook over the next few years and whether the future looks brighter. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings. See our latest analysis for Georgia Healthcare Group

Analysts’ outlook for the upcoming year seems optimistic, with earnings growth more than doubling. Earnings continue to grow strongly in the next couple of years, finally reaching GEL103.99M in 2021.

LSE:GHG Future Profit Mar 7th 18
LSE:GHG Future Profit Mar 7th 18

While it’s informative understanding the growth year by year relative to today’s figure, it may be more beneficial estimating the rate at which the earnings are growing on average every year. The benefit of this approach is that we can get a better picture of the direction of Georgia Healthcare Group’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate this rate, I’ve appended a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 28.75%. This means that, we can expect Georgia Healthcare Group will grow its earnings by 28.75% every year for the next few years.

Next Steps:

For Georgia Healthcare Group, I’ve compiled three fundamental factors 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 GHG 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 GHG is currently mispriced by the market.
  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of GHG? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!