Yahoo Finance How Do Analysts See Ferrexpo Plc (LON:FXPO) Performing In The Year Ahead?
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Based on Ferrexpo Plc's (LON:FXPO) earnings update on 31 December 2018, the consensus outlook from analysts appear fairly confident, with profits predicted to increase by 23% next year compared with the past 5-year average growth rate of 14%. With trailing-twelve-month net income at current levels of US$334m, we should see this rise to US$409m in 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
See our latest analysis for Ferrexpo
Can we expect Ferrexpo to keep growing?
The longer term expectations from the 9 analysts of FXPO 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. 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.
From the current net income level of US$334m and the final forecast of US$340m by 2022, the annual rate of growth for FXPO’s earnings is 1.8%. This leads to an EPS of $0.58 in the final year of projections relative to the current EPS of $0.57. Analysts are predicting this high revenue growth to squeeze profit margins over time, from 26% to 25% by the end of 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Ferrexpo, I've compiled three fundamental aspects you should further research:
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 Ferrexpo 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 Ferrexpo is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Ferrexpo? 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.
