Looking at QUIZ plc’s (LON:QUIZ) recent earnings update on 30 September 2018, analyst consensus outlook seem pessimistic, with earnings expected to decline by -2.1% in the upcoming year relative to the past 5-year average growth rate of 16%. Presently, with latest-twelve-month earnings at UK£6.8m, we should see this fall to UK£6.7m by 2019. Below is a brief commentary around QUIZ’s earnings outlook going forward, which may give you a sense of market sentiment for the company. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
What can we expect from QUIZ in the longer term?
Over the next three years, it seems the consensus view of the 5 analysts covering QUIZ is skewed 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 QUIZ’s earnings growth over these next few years.
This results in an annual growth rate of 15% based on the most recent earnings level of UK£6.8m to the final forecast of UK£9.5m by 2021. EPS reaches £0.070 in the final year of forecast compared to the current £0.055 EPS today. However, the near term margins may change heading into 2021, from the current levels of 5.9% to 5.6%.
Future outlook is only one aspect when you’re building an investment case for a stock. For QUIZ, I’ve compiled three relevant aspects you should further examine:
- 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 QUIZ 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 QUIZ is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of QUIZ? 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 email@example.com.