On 30 June 2019, IVE Group Limited (ASX:IGL) released its earnings update. Generally, analyst consensus outlook appear cautiously subdued, as a 6.7% rise in profits is expected in the upcoming year, relative to the higher past 5-year average growth rate of 39%. With trailing-twelve-month net income at current levels of AU$31m, we should see this rise to AU$33m in 2020. Below is a brief commentary on the longer term outlook the market has for IVE Group. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
Can we expect IVE Group to keep growing?
The longer term expectations from the 2 analysts of IGL is tilted towards the positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To get an idea of the overall earnings growth trend for IGL, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
By 2022, IGL's earnings should reach AU$42m, from current levels of AU$31m, resulting in an annual growth rate of 10%. This leads to an EPS of A$0.29 in the final year of projections relative to the current EPS of A$0.21. In 2022, IGL's profit margin will have expanded from 4.3% to 5.4%.
Future outlook is only one aspect when you're building an investment case for a stock. For IVE Group, I've compiled three essential 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 IVE 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 IVE Group is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of IVE 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 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.