Yahoo Finance Will Rotork plc's (LON:ROR) Earnings Grow In The Year Ahead?
In December 2018, Rotork plc (LON:ROR) released its earnings update. Generally, analysts seem fairly confident, with earnings expected to grow by 1.9% in the upcoming year relative to the past 5-year average growth rate of -9.9%. Currently with trailing-twelve-month earnings of UK£92m, we can expect this to reach UK£93m by 2020. Below is a brief commentary on the longer term outlook the market has for Rotork. For those interested in more of an analysis of the company, you can research its fundamentals here.
See our latest analysis for Rotork
How is Rotork going to perform in the near future?
The longer term expectations from the 18 analysts of ROR is tilted towards the positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To understand the overall trajectory of ROR'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.
This results in an annual growth rate of 8.5% based on the most recent earnings level of UK£92m to the final forecast of UK£117m by 2022. EPS reaches £0.13 in the final year of forecast compared to the current £0.11 EPS today. Margins are currently sitting at 13%, which is expected to expand to 15% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Rotork, there are three pertinent factors you should further examine:
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 Rotork 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 Rotork is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Rotork? 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.
