What can we expect from Intelsat in the longer term?The longer term expectations from the 8 analysts of I is tilted 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. I’ve plotted out each year’s earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of I’s earnings growth over these next few years. This results in an annual growth rate of 21.90% based on the most recent earnings level of -US$178.73M to the final forecast of -US$289.45M by 2021. This leads to an EPS of $-0.83 in the final year of projections relative to the current EPS of $-1.5. The primary reason for earnings growth is due to cost-cutting initiatives, since top-line is predicted to rise at a slower pace than earnings. With a current profit margin of -8.32%, this movement will result in a margin of -13.40% by 2021.
Future outlook is only one aspect when you’re building an investment case for a stock. For Intelsat, I’ve put together three fundamental factors you should further examine:
- 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 Intelsat 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 Intelsat is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Intelsat? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!