Indutrade AB (publ)’s (OM:INDT) latest earnings announcement in December 2017 suggested that the business benefited from a slight tailwind, leading to a single-digit earnings growth of 9.94%. Below, I’ve laid out key numbers on how market analysts predict Indutrade’s earnings growth trajectory over the next few years and whether the future looks even brighter than the past. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in. See our latest analysis for Indutrade
Analysts’ expectations for next year seems positive, with earnings growing by a robust 29.88%. This growth seems to continue into the following year with rates arriving at double digit 40.02% compared to today’s earnings, and finally hitting KR1.58B by 2021.
While it’s informative knowing the growth rate year by year relative to today’s value, it may be more insightful to analyze the rate at which the business is moving on average every year. The benefit of this method is that we can get a bigger picture of the direction of Indutrade’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate this rate, I’ve appended a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 13.28%. This means that, we can assume Indutrade will grow its earnings by 13.28% every year for the next couple of years.
Next Steps:
For Indutrade, I’ve put together three fundamental factors 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 INDT 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 INDT 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 INDT? 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 pass 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.