Yahoo Finance What Are Analysts Saying About The Future Of Halma plc's (LON:HLMA)?
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After Halma plc's (LON:HLMA) earnings announcement on 31 March 2019, it seems that analyst expectations are fairly bearish, with profits predicted to rise by 7.3% next year relative to the higher past 5-year average growth rate of 11%. Presently, with latest-twelve-month earnings at UK£170m, we should see this growing to UK£182m by 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
Check out our latest analysis for Halma
How is Halma going to perform in the near future?
The view from 13 analysts over the next three years is one of 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 reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.
By 2022, HLMA's earnings should reach UK£214m, from current levels of UK£170m, resulting in an annual growth rate of 7.8%. EPS reaches £0.58 in the final year of forecast compared to the current £0.45 EPS today. Margins are currently sitting at 14%, which is expected to expand to 14% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Halma, I've put together three key aspects 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 Halma 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 Halma is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Halma? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
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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.
