Yahoo Finance What Are Analysts Saying About Rotork plc’s (LON:ROR) Growth?
Based on Rotork plc’s (LON:ROR) earnings update in June 2018, analysts seem cautiously optimistic, with earnings expected to grow by 50% in the upcoming year compared with the past 5-year average growth rate of -12%. By 2020, we can expect Rotork’s bottom line to reach UK£83m, a jump from the current trailing-twelve-month of UK£56m. Below is a brief commentary on the longer term outlook the market has for Rotork. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
See our latest analysis for Rotork
How is Rotork going to perform in the near future?
The longer term view from the 17 analysts covering ROR is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To get an idea of the overall earnings growth trend for ROR, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
From the current net income level of UK£56m and the final forecast of UK£112m by 2022, the annual rate of growth for ROR’s earnings is 14%. EPS reaches £0.14 in the final year of forecast compared to the current £0.064 EPS today. Margins are currently sitting at 8.7%, which is expected to expand to 15% by 2022.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Rotork, I’ve compiled three key 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 Rotork 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 Rotork is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Rotork? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
