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accesso Technology Group plc (LON:ACSO): Immense Growth Potential?

Simply Wall St

Based on accesso Technology Group plc's (LON:ACSO) earnings update in December 2018, analysts seem fairly confident, as a 29% increase in profits is expected in the upcoming year, compared with the past 5-year average growth rate of 21%. Currently with trailing-twelve-month earnings of US$3.3m, we can expect this to reach US$4.2m by 2020. Below is a brief commentary around accesso Technology Group's earnings outlook going forward, which may give you a sense of market sentiment for the company. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.

View our latest analysis for accesso Technology Group

Exciting times ahead?

The longer term view from the 5 analysts covering ACSO 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 ACSO'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.

AIM:ACSO Past and Future Earnings, August 23rd 2019

By 2022, ACSO's earnings should reach US$4.2m, from current levels of US$3.3m, resulting in an annual growth rate of 48%. EPS reaches $0.15 in the final year of forecast compared to the current $0.12 EPS today. Margins are currently sitting at 2.8%, approximately the same as previous years. With analysts forecasting revenue growth of 0.26749 and ACSO's net income growth expected to roughly track that, this company may add value for shareholders over time.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For accesso Technology Group, there are three essential aspects you should further examine:

  1. 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.
  2. Valuation: What is accesso Technology 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 accesso Technology Group is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of accesso Technology 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.