Yahoo Finance Tricorn Group plc (LON:TCN): What Does The Future Look Like?
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Since Tricorn Group plc (LON:TCN) released its earnings in March 2019, analysts seem cautiously bearish, as a 14% rise in profits is expected in the upcoming year, relative to the higher past 5-year average growth rate of 62%. Currently with trailing-twelve-month earnings of UK£884k, we can expect this to reach UK£1.0m by 2020. Below is a brief commentary around Tricorn Group's earnings outlook going forward, which may give you a sense of market sentiment for the company. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
See our latest analysis for Tricorn Group
How will Tricorn Group perform in the near future?
The longer term view from the 1 analysts covering TCN is one of positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of TCN's earnings growth over these next few years.
From the current net income level of UK£884k and the final forecast of UK£1.4m by 2022, the annual rate of growth for TCN’s earnings is 16%. This leads to an EPS of £0.042 in the final year of projections relative to the current EPS of £0.026. In 2022, TCN's profit margin will have expanded from 3.9% to 5.5%.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Tricorn Group, I've put together three pertinent aspects 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 Tricorn 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 Tricorn Group is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Tricorn 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.
