Yahoo Finance What Should You Know About IMI plc’s (LON:IMI) Growth?
In June 2018, IMI plc (LON:IMI) announced its earnings update. Overall, the consensus outlook from analysts appear fairly confident, with earnings expected to grow by 18% in the upcoming year compared with the past 5-year average growth rate of -6.7%. Currently with trailing-twelve-month earnings of UK£145m, we can expect this to reach UK£172m by 2019. 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.
Check out our latest analysis for IMI
How is IMI going to perform in the near future?
Longer term expectations from the 17 analysts covering IMI’s stock is one of 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 IMI’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 2021, IMI’s earnings should reach UK£200m, from current levels of UK£145m, resulting in an annual growth rate of 8.0%. This leads to an EPS of £0.75 in the final year of projections relative to the current EPS of £0.54. With a current profit margin of 8.3%, this movement will result in a margin of 10% by 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For IMI, there are three fundamental aspects 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 IMI 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 IMI is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of IMI? 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.
