As Advanced Medical Solutions Group plc (LON:AMS) announced its earnings release on 30 June 2019, analyst forecasts seem fairly subdued, with earnings expected to grow by 3.4% in the upcoming year compared with the higher past 5-year average growth rate of 13%. Presently, with latest-twelve-month earnings at UK£23m, we should see this growing to UK£23m by 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Advanced Medical Solutions Group in the longer term. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
Exciting times ahead?
The longer term expectations from the 5 analysts of AMS is tilted towards the positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. 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 AMS's earnings growth over these next few years.
This results in an annual growth rate of 11% based on the most recent earnings level of UK£23m to the final forecast of UK£30m by 2022. EPS reaches £0.13 in the final year of forecast compared to the current £0.11 EPS today. Margins are currently sitting at 22%, which is expected to expand to 24% by 2022.
Future outlook is only one aspect when you're building an investment case for a stock. For Advanced Medical Solutions Group, there are three key aspects you should look at:
- 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 Advanced Medical Solutions 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 Advanced Medical Solutions Group is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Advanced Medical Solutions 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!
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If you spot an error that warrants correction, please contact the editor at email@example.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.