In March 2019, Public Joint-Stock Company Unipro (MCX:UPRO) announced its earnings update. Overall, analysts seem fairly confident, with earnings expected to grow by 17% in the upcoming year relative to the past 5-year average growth rate of 13%. Presently, with latest-twelve-month earnings at RUруб17b, we should see this growing to RUруб20b by 2020. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for Unipro in the longer term. For those interested in more of an analysis of the company, you can research its fundamentals here.
Exciting times ahead?
Over the next three years, it seems the consensus view of the 5 analysts covering UPRO is skewed towards the positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. 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 UPRO’s earnings growth over these next few years.
From the current net income level of RUруб17b and the final forecast of RUруб23b by 2022, the annual rate of growth for UPRO’s earnings is 9.3%. This leads to an EPS of RUB0.39 in the final year of projections relative to the current EPS of RUB0.26. With a current profit margin of 21%, this movement will result in a margin of 25% by 2022.
Future outlook is only one aspect when you’re building an investment case for a stock. For Unipro, there are three key aspects you should look at:
- 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 Unipro 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 Unipro is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Unipro? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
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If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.