Looking at Portland General Electric Company’s (NYSE:POR) earnings update on 31 December 2018, analyst consensus outlook appear cautiously subdued, with earnings expected to grow by 3.4% in the upcoming year relative to the higher past 5-year average growth rate of 7.6%. Currently with trailing-twelve-month earnings of US$212m, we can expect this to reach US$219m by 2020. Below is a brief commentary on the longer term outlook the market has for Portland General Electric. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
How will Portland General Electric perform in the near future?
The longer term expectations from the 7 analysts of POR is tilted towards the positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. 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 POR’s earnings growth over these next few years.
This results in an annual growth rate of 4.1% based on the most recent earnings level of US$212m to the final forecast of US$241m by 2022. This leads to an EPS of $2.7 in the final year of projections relative to the current EPS of $2.38. Margins are currently sitting at 11%, which is expected to expand to 11% by 2022.
Future outlook is only one aspect when you’re building an investment case for a stock. For Portland General Electric, I’ve compiled three essential 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 Portland General Electric 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 Portland General Electric is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Portland General Electric? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.