In This Article:
MyState Limited's (ASX:MYS) announced its latest earnings update in August 2019, which indicated that the company endured a slight headwind with earnings falling from AU$31m to AU$30m, a change of -5.3%. Below, I've presented key growth figures on how market analysts perceive MyState's earnings growth trajectory over the next couple of years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.
Check out our latest analysis for MyState
Market analysts' consensus outlook for next year seems rather muted, with earnings growing by a single digit 5.4%. The growth outlook in the following year seems much more buoyant with rates generating double digit 10% compared to today’s earnings, and finally hitting AU$34m by 2022.
While it is helpful to be aware of the growth rate year by year relative to today’s level, it may be more beneficial analyzing the rate at which the earnings are rising or falling every year, on average. The pro of this technique is that it ignores near term flucuations and accounts for the overarching direction of MyState's earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I've inserted a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 4.6%. This means, we can anticipate MyState will grow its earnings by 4.6% every year for the next few years.
Next Steps:
For MyState, I've compiled three relevant aspects you should further examine:
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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 MYS 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 MYS 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 MYS? 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.