Need To Know: Analysts Are Much More Bullish On Q & M Dental Group (Singapore) Limited (SGX:QC7) Revenues

Celebrations may be in order for Q & M Dental Group (Singapore) Limited (SGX:QC7) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.

After this upgrade, Q & M Dental Group (Singapore)'s four analysts are now forecasting revenues of S$238m in 2021. This would be a substantial 57% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to surge 83% to S$0.046. Prior to this update, the analysts had been forecasting revenues of S$206m and earnings per share (EPS) of S$0.045 in 2021. There's clearly been a surge in bullishness around the company's sales pipeline, even if there's no real change in earnings per share forecasts.

View our latest analysis for Q & M Dental Group (Singapore)

Even though revenue forecasts increased, there was no change to the consensus price target of S$0.78, suggesting the analysts are focused on earnings as the driver of value creation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Q & M Dental Group (Singapore), with the most bullish analyst valuing it at S$0.97 and the most bearish at S$0.54 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. One thing stands out from these estimates, which is that Q & M Dental Group (Singapore) is forecast to grow faster in the future than it has in the past, with revenues expected to display 83% annualised growth until the end of 2021. If achieved, this would be a much better result than the 1.7% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 16% annually. Not only are Q & M Dental Group (Singapore)'s revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Q & M Dental Group (Singapore).

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Q & M Dental Group (Singapore) going out to 2023, and you can see them free on our platform here..

We also provide an overview of the Q & M Dental Group (Singapore) Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

When trading Q & M Dental Group (Singapore) or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.