Yahoo Finance Ten Entertainment Group plc (LON:TEG): What Does The Future Look Like?
Looking at Ten Entertainment Group plc's (LON:TEG) earnings update in December 2018, it seems that analyst forecasts are substantially optimistic, with earnings expected to grow by a high double-digit of 54% in the upcoming year, against the historical 5-year average growth rate of 49%. Presently, with latest-twelve-month earnings at UK£8.1m, we should see this growing to UK£13m by 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Ten Entertainment Group in the longer term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
See our latest analysis for Ten Entertainment Group
How will Ten Entertainment Group perform in the near future?
The longer term view from the 5 analysts covering TEG is one of 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 TEG'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 2022, TEG's earnings should reach UK£16m, from current levels of UK£8.1m, resulting in an annual growth rate of 13%. EPS reaches £0.25 in the final year of forecast compared to the current £0.13 EPS today. With a current profit margin of 11%, this movement will result in a margin of 17% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Ten Entertainment Group, I've put together 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 Ten Entertainment 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 Ten Entertainment Group is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Ten Entertainment 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!
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.
