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Since EPR Properties (NYSE:EPR) released its earnings in September 2018, analyst forecasts seem fairly subdued, with earnings expected to grow by 3.1% in the upcoming year relative to the higher past 5-year average growth rate of 11%. With trailing-twelve-month net income at current levels of US$234m, we should see this rise to US$242m in 2020. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for EPR Properties in the longer term. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
Can we expect EPR Properties to keep growing?
Over the next three years, it seems the consensus view of the 3 analysts covering EPR 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. To understand the overall trajectory of EPR’s earnings growth over these next fews years, I’ve fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
From the current net income level of US$234m and the final forecast of US$261m by 2022, the annual rate of growth for EPR’s earnings is 3.5%. This leads to an EPS of $3.53 in the final year of projections relative to the current EPS of $3.29. However, the near term margins may change heading into 2022, from the current levels of 41% to 39%.
Future outlook is only one aspect when you’re building an investment case for a stock. For EPR Properties, I’ve compiled three key factors you should further research:
- 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 EPR Properties 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 EPR Properties is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of EPR Properties? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.