Yahoo Finance What Should Investors Know About TBC Bank Group PLC's (LON:TBCG) Future?
In March 2019, TBC Bank Group PLC (LON:TBCG) announced its earnings update. Overall, analysts seem cautiously bearish, with profits predicted to rise by 4.8% next year compared with the higher past 5-year average growth rate of 24%. With trailing-twelve-month net income at current levels of GEL435m, we should see this rise to GEL456m in 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
View our latest analysis for TBC Bank Group
Can we expect TBC Bank Group to keep growing?
Over the next three years, it seems the consensus view of the 5 analysts covering TBCG is skewed towards the positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To understand the overall trajectory of TBCG's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
By 2022, TBCG's earnings should reach GEL588m, from current levels of GEL435m, resulting in an annual growth rate of 10%. EPS reaches GEL11.9 in the final year of forecast compared to the current GEL8.07 EPS today. This high rate of growth of revenue squeezes margins, as analysts predict an upcoming margin contraction from the current 47% to 41% by the end of 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For TBC Bank Group, I've compiled three important 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 TBC Bank Group 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 TBC Bank Group is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of TBC Bank Group? 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.
