Yahoo Finance What Do Analysts Think About Acacia Mining plc’s (LON:ACA) Future?
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After Acacia Mining plc’s (LON:ACA) earnings announcement on 31 December 2018, analyst consensus outlook appear cautiously optimistic, with profits predicted to increase by 34% next year against the past 5-year average growth rate of -9.3%. With trailing-twelve-month net income at current levels of US$59m, we should see this rise to US$79m in 2020. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for Acacia Mining in the longer term. For those interested in more of an analysis of the company, you can research its fundamentals here.
View our latest analysis for Acacia Mining
Exciting times ahead?
Longer term expectations from the 11 analysts covering ACA’s stock 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. I’ve plotted out each year’s earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of ACA’s earnings growth over these next few years.
This results in an annual growth rate of 18% based on the most recent earnings level of US$59m to the final forecast of US$99m by 2022. EPS reaches $0.26 in the final year of forecast compared to the current $0.14 EPS today. With a current profit margin of 8.9%, this movement will result in a margin of 13% by 2022.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Acacia Mining, I’ve put together three pertinent factors 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 Acacia Mining 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 Acacia Mining is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Acacia Mining? 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.
