Market analysts’ consensus outlook for this coming year seems relatively subdued, with earnings continuing to flop around in the negative territory, generating -US$181.20M in 2019. However, earnings are expected to move into an upward direction, arriving at -US$161.74M in 2020, and -US$68.01M in 2021.
Although it’s helpful to understand the growth year by year relative to today’s figure, it may be more beneficial to analyze the rate at which the company is rising or falling every year, on average. The pro of this approach is that we can get a better picture of the direction of Intelsat’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To compute this rate, I put a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 21.90%. This means that, we can presume Intelsat will grow its earnings by 21.90% every year for the next few years.
For Intelsat, there are three pertinent 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 I 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 I is currently mispriced by the market.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of I? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!