Stock Analysis

Here's What Analysts Are Forecasting For Elm Company (TADAWUL:7203) After Its Annual Results

SASE:7203
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Last week, you might have seen that Elm Company (TADAWUL:7203) released its yearly result to the market. The early response was not positive, with shares down 5.3% to ر.س935 in the past week. The result was positive overall - although revenues of ر.س7.4b were in line with what the analysts predicted, Elm surprised by delivering a statutory profit of ر.س23.51 per share, modestly greater than expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Elm

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SASE:7203 Earnings and Revenue Growth March 13th 2025

Taking into account the latest results, the most recent consensus for Elm from seven analysts is for revenues of ر.س9.38b in 2025. If met, it would imply a huge 27% increase on its revenue over the past 12 months. Per-share earnings are expected to ascend 16% to ر.س27.23. Yet prior to the latest earnings, the analysts had been anticipated revenues of ر.س8.73b and earnings per share (EPS) of ر.س26.59 in 2025. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

Despite these upgrades,the analysts have not made any major changes to their price target of ر.س1,225, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Elm analyst has a price target of ر.س1,500 per share, while the most pessimistic values it at ر.س923. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Elm'shistorical trends, as the 27% annualised revenue growth to the end of 2025 is roughly in line with the 23% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.7% annually. So although Elm is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

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The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Elm's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Elm going out to 2027, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Elm , and understanding this should be part of your investment process.

Valuation is complex, but we're here to simplify it.

Discover if Elm might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.