Yahoo Finance PageGroup plc (LON:PAGE): What Does The Future Look Like?
After PageGroup plc's (LON:PAGE) earnings announcement on 31 December 2018, analyst consensus outlook appear cautiously subdued, with profits predicted to rise by 11% next year relative to the higher past 5-year average growth rate of 15%. By 2020, we can expect PageGroup’s bottom line to reach UK£115m, a jump from the current trailing-twelve-month of UK£104m. Below is a brief commentary on the longer term outlook the market has for PageGroup. For those interested in more of an analysis of the company, you can research its fundamentals here.
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See our latest analysis for PageGroup
Exciting times ahead?
The 8 analysts covering PAGE view its longer term outlook with a positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around 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.
From the current net income level of UK£104m and the final forecast of UK£138m by 2022, the annual rate of growth for PAGE’s earnings is 9.4%. This leads to an EPS of £0.44 in the final year of projections relative to the current EPS of £0.33. In 2022, PAGE's profit margin will have expanded from 6.7% to 7.5%.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For PageGroup, I've compiled three fundamental 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 PageGroup 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 PageGroup is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of PageGroup? 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.
