In March 2018, Assura Plc (LON:AGR) released its latest earnings announcement, which confirmed that the company experienced a significant headwind with earnings falling by -24.66%. Below, I’ve laid out key numbers on how market analysts perceive Assura’s earnings growth outlook over the next couple of years and whether the future looks brighter. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings.
Market analysts’ prospects for this coming year seems positive, with earnings expanding by a significant 96.31%. However, this positive earnings growth is not expected to last, with earnings facing a downward trend over the next couple of years, reaching UK£125.59m in 2021.
Although it’s informative understanding the growth year by year relative to today’s level, it may be more valuable to estimate the rate at which the company is moving every year, on average. The pro of this approach is that we can get a better picture of the direction of Assura’s earnings trajectory over the long run, irrespective of near term fluctuations, be more volatile. To compute this rate, I’ve inserted 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 8.06%. This means, we can expect Assura will grow its earnings by 8.06% every year for the next couple of years.
For Assura, I’ve put together three important 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 AGR 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 AGR is currently mispriced by the market.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of AGR? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.