Yahoo Finance What Are Analysts Expecting From STM Group Plc (LON:STM) In The Year Ahead?
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Based on STM Group Plc's (LON:STM) recently announced earnings update on 31 December 2018, analyst forecasts appear to be bearish, as a -7.7% fall in profits is expected in the upcoming year relative to the past 5-year average growth rate of 38%. Presently, with latest-twelve-month earnings at UK£3.7m, we should see this fall to UK£3.4m by 2020. Below is a brief commentary on the longer term outlook the market has for STM Group. For those interested in more of an analysis of the company, you can research its fundamentals here.
Check out our latest analysis for STM Group
Exciting times ahead?
Longer term expectations from the 1 analysts covering STM’s stock is one of positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To understand the overall trajectory of STM'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.
By 2022, STM's earnings should reach UK£4.1m, from current levels of UK£3.7m, resulting in an annual growth rate of 3.9%. This leads to an EPS of £0.066 in the final year of projections relative to the current EPS of £0.062. Margins are currently sitting at 17%, which is expected to expand to 19% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For STM Group, I've compiled three important 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 STM Group 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 STM Group is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of STM Group? 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 editorial-team@simplywallst.com. 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.
