Since GIMA TT SpA (BIT:GIMA) released its earnings in June 2018, analyst consensus outlook appear cautiously subdued, as a 18.2% rise in profits is expected in the upcoming year, against the higher past 5-year average growth rate of 35.9%. Presently, with latest-twelve-month earnings at €46.8m, we should see this growing to €55.3m by 2019. I will provide a brief commentary around the figures and analyst expectations in the near term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
Check out our latest analysis for GIMA TT
What can we expect from GIMA TT in the longer term?
Over the next three years, it seems the consensus view of the 5 analysts covering GIMA is skewed 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 GIMA’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 2021, GIMA’s earnings should reach €63.6m, from current levels of €44.1m, resulting in an annual growth rate of 11.5%. EPS reaches €0.77 in the final year of forecast compared to the current €0.50 EPS today. Growth in earnings appears to be a result of top-line expansion of 11.7%, dropping down to the bottome-line. By the end of 2021, analysts are expecting earnings to outpace revenue, and margins to expand from the current 28.6% to 30.8%.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For GIMA TT, I’ve put together three important aspects you should further research:
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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.
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Valuation: What is GIMA TT 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 GIMA TT is currently mispriced by the market.
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Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of GIMA TT? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.