Yahoo Finance Lok’nStore Group Plc (LON:LOK): What We Can Expect From This Growth Stock
In July 2018, Lok’nStore Group Plc (LON:LOK) announced its earnings update. Overall, analyst consensus outlook appear cautiously subdued, as a 3.8% rise in profits is expected in the upcoming year, relative to the higher past 5-year average growth rate of 26%. With trailing-twelve-month net income at current levels of UK£3.8m, we should see this rise to UK£3.9m in 2020. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for Lok’nStore Group in the longer term. For those interested in more of an analysis of the company, you can research its fundamentals here.
Check out our latest analysis for Lok’nStore Group
What can we expect from Lok’nStore Group in the longer term?
Over the next three years, it seems the consensus view of the 1 analysts covering LOK is skewed towards the positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To reduce the year-on-year volatility of analyst earnings forecast, I’ve inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.
By 2022, LOK’s earnings should reach UK£5.3m, from current levels of UK£3.8m, resulting in an annual growth rate of 12%. EPS reaches £0.18 in the final year of forecast compared to the current £0.13 EPS today. Margins are currently sitting at 21%, which is expected to expand to 24% by 2022.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Lok’nStore Group, I’ve compiled 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 Lok’nStore 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 Lok’nStore Group is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Lok’nStore 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!
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.
