Public Joint Stock Company Acron (MCX:AKRN): Immense Growth Potential?

The most recent earnings announcement Public Joint Stock Company Acron’s (MISX:AKRN) released in December 2017 signalled that the business faced a substantial headwind with earnings deteriorating by -51.65%. Below is my commentary, albeit very simple and high-level, on how market analysts perceive Acron’s earnings growth trajectory over the next couple of years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in. See our latest analysis for Acron

Market analysts’ prospects for the coming year seems rather muted, with earnings climbing by a single digit 0.41%. The growth outlook in the following year seems much more optimistic with rates generating double digit 17.60% compared to today’s earnings, and finally hitting RUРУБ19.29B by 2021.

MISX:AKRN Future Profit May 18th 18
MISX:AKRN Future Profit May 18th 18

Even though it’s informative understanding the rate of growth each year relative to today’s figure, it may be more insightful evaluating the rate at which the company is rising or falling on average every year. The benefit of this method is that it removes the impact of near term flucuations and accounts for the overarching direction of Acron’s earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I put 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 13.92%. This means that, we can assume Acron will grow its earnings by 13.92% every year for the next few years.

Next Steps:

For Acron, I’ve put together three important aspects you should further examine:

  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 AKRN 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 AKRN is currently mispriced by the market.
  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of AKRN? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!