Analysts Have Made A Financial Statement On Civmec Limited's (SGX:P9D) Full-Year Report

Investors in Civmec Limited (SGX:P9D) had a good week, as its shares rose 3.9% to close at S$0.94 following the release of its annual results. It was a workmanlike result, with revenues of AU$1.0b coming in 2.7% ahead of expectations, and statutory earnings per share of AU$0.13, in line with analyst appraisals. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Civmec

Taking into account the latest results, the current consensus, from the three analysts covering Civmec, is for revenues of AU$1.01b in 2025. This implies a small 2.1% reduction in Civmec's revenue over the past 12 months. Statutory earnings per share are forecast to decrease 5.4% to AU$0.12 in the same period. Before this earnings report, the analysts had been forecasting revenues of AU$1.02b and earnings per share (EPS) of AU$0.13 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at S$1.18, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Civmec at S$1.31 per share, while the most bearish prices it at S$1.05. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 2.1% annualised decline to the end of 2025. That is a notable change from historical growth of 20% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 9.7% annually for the foreseeable future. It's pretty clear that Civmec's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Civmec. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Civmec's revenue is expected to perform worse than the wider industry. The consensus price target held steady at S$1.18, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Civmec. Long-term earnings power is much more important than next year's profits. We have forecasts for Civmec going out to 2027, and you can see them free on our platform here.

You can also see our analysis of Civmec's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.