Market analysts’ consensus outlook for this coming year seems pessimistic, with earnings becoming even more negative, arriving at -UK£20.64m in 2019. In addition, earnings are expected to fall off and stay relatively stable over the next few years, arriving at -UK£18.60m in 2021.
While it is informative knowing the growth each year relative to today’s level, it may be more beneficial to evaluate the rate at which the company is moving on average every year. The benefit of this technique is that we can get a better picture of the direction of Blue Prism 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 analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is -17.35%. This means that, we can assume Blue Prism Group will chip away at a rate of -17.35% every year for the next few years.
For Blue Prism Group, I’ve compiled three essential 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.
- Management:Have insiders been ramping up their shares to take advantage of the market’s sentiment for PRSM’s future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of PRSM? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!