Yahoo Finance Gateley (Holdings) Plc (LON:GTLY): Poised For Long Term Success?
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On 30 April 2019, Gateley (Holdings) Plc (LON:GTLY) announced its earnings update. Overall, analyst consensus outlook appear cautiously optimistic, as a 12% increase in profits is expected in the upcoming year, against the past 5-year average growth rate of -16%. Presently, with latest-twelve-month earnings at UK£13m, we should see this growing to UK£15m by 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Gateley (Holdings) 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 Gateley (Holdings)
Can we expect Gateley (Holdings) to keep growing?
Longer term expectations from the 4 analysts covering GTLY’s stock is one of positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. 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 GTLY's earnings growth over these next few years.
This results in an annual growth rate of 8.0% based on the most recent earnings level of UK£13m to the final forecast of UK£16m by 2022. EPS reaches £0.14 in the final year of forecast compared to the current £0.12 EPS today. Margins are currently sitting at 13%, which is expected to expand to 13% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Gateley (Holdings), there are three pertinent 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 Gateley (Holdings) 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 Gateley (Holdings) is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Gateley (Holdings)? 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.
