Yahoo Finance How Do Analysts See IGas Energy plc (LON:IGAS) Performing In The Next 12 Months?
In June 2018, IGas Energy plc (LON:IGAS) released its earnings update. Generally, analysts seem cautiously optimistic, with earnings expected to grow by 23.5% in the upcoming year compared with the past 5-year average growth rate of 18.0%. By 2019, we can expect IGas Energy’s bottom line to reach UK£8.2m, a jump from the current trailing-twelve-month UK£6.6m. Below is a brief commentary around IGas Energy’s earnings outlook going forward, which may give you a sense of market sentiment for the company. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
Check out our latest analysis for IGas Energy
What can we expect from IGas Energy in the longer term?
Over the next three years, it seems the consensus view of the 2 analysts covering IGAS is skewed towards the negative sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To get an idea of the overall earnings growth trend for IGAS, 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£15.9m and the final forecast of UK£13.1m by 2021, the annual rate of growth for IGAS’s earnings is -9.4%. EPS reaches £0.044 in the final year of forecast compared to the current £0.13 EPS today. Fall in earnings appears to be a result of a falling top-line, with negative growth of -9.5%. However, the current margin of 44.3% is expected to expand to 44.6% by 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For IGas Energy, I’ve compiled three fundamental 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 IGas Energy 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 IGas Energy is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of IGas Energy? 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.
