Yahoo Finance Will Marshalls plc's (LON:MSLH) Earnings Grow Over The Next Year?
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On 31 December 2018, Marshalls plc (LON:MSLH) announced its earnings update. Overall, the consensus outlook from analysts appear somewhat bearish, with profits predicted to rise by 6.2% next year compared with the higher past 5-year average growth rate of 23%. Presently, with latest-twelve-month earnings at UK£52m, we should see this growing to UK£55m by 2020. Below is a brief commentary on the longer term outlook the market has for Marshalls. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
See our latest analysis for Marshalls
Exciting times ahead?
Over the next three years, it seems the consensus view of the 5 analysts covering MSLH 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 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, MSLH's earnings should reach UK£66m, from current levels of UK£52m, resulting in an annual growth rate of 7.7%. This leads to an EPS of £0.34 in the final year of projections relative to the current EPS of £0.26. With a current profit margin of 11%, this movement will result in a margin of 11% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Marshalls, there are three fundamental 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 Marshalls 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 Marshalls is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Marshalls? 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 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.
