Yahoo Finance How Do Analysts See Genting Singapore Limited (SGX:G13) Performing In The Next 12 Months?
In June 2018, Genting Singapore Limited (SGX:G13) released its earnings update. Generally, analyst consensus outlook appear cautiously optimistic, with earnings expected to grow by 18% in the upcoming year relative to the past 5-year average growth rate of -2.0%. With trailing-twelve-month net income at current levels of S$671m, we should see this rise to S$793m in 2019. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for Genting Singapore in the longer term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
See our latest analysis for Genting Singapore
What can we expect from Genting Singapore in the longer term?
Longer term expectations from the 21 analysts covering G13’s stock is one of 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.
By 2021, G13’s earnings should reach S$778m, from current levels of S$601m, resulting in an annual growth rate of 4.2%. This leads to an EPS of SGD0.072 in the final year of projections relative to the current EPS of SGD0.050. Growth in earnings appears to be a result of cost cutting activities, as revenues is expected to grow much slower than earnings. Margins is currently sitting at 25%, which is expected to expand to 29% by 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Genting Singapore, I’ve compiled three fundamental 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 Genting Singapore 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 Genting Singapore is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Genting Singapore? 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.
