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Powerbridge Technologies Co., Ltd.'s (NASDAQ:PBTS) latest earnings update in April 2019 indicated that the company experienced a immense headwind with earnings deteriorating by -61%. Below, I've laid out key numbers on how market analysts view Powerbridge Technologies's earnings growth outlook over the next few years and whether the future looks brighter. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings.
Analysts' outlook for the upcoming year seems buoyant, with earnings growing by a significant 78%. Earnings are predicted to peak in the following year, arriving at US$4.3m before declining to US$2.1m in 2022.
Even though it is helpful to be aware of the growth each year relative to today’s level, it may be more valuable analyzing the rate at which the company is moving every year, on average. The pro of this approach is that we can get a bigger picture of the direction of Powerbridge Technologies's earnings trajectory over the long run, irrespective of near term fluctuations, fluctuate up and down. To compute this rate, I put a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 16%. This means, we can expect Powerbridge Technologies will grow its earnings by 16% every year for the next few years.
For Powerbridge Technologies, there are three pertinent factors 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 PBTS 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 PBTS is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of PBTS? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.