What Are Analysts Saying About Goodman Group’s (ASX:GMG) Growth?
Goodman Group (ASX:GMG) is predicted to grow its earnings per share by a robust double-digit 18.17% over the next three years. Presently, with an EPS of A$0.435, we can expect an upcoming EPS of A$0.514. To determine whether this growth rate expectation is justified, we should take a look at how the company has been performing in the past. Check out our latest analysis for Goodman Group
Exciting times ahead?
GMG is covered by 12 analysts who by consensus are expecting earnings to increase from today’s level of A$0.435 to A$0.514 over the next couple of years. This illustrates a relatively optimistic outlook in the near term, with a relatively solid earnings per share growth rate of 18.17% over the next few years. During the same time revenue is predicted to reduce slightly from A$1,972M to A$1,753M and profit is predicted to escalate from A$778M to A$919M in the next couple of years, growing by 18.17%. Given this level of revenue and earnings, margins are expected to be extremely healthy as well.
Is this similar growth to the past?
The past can be a great indicator for future performance for a stock. We can determine whether this level of expected growth exhibits a continuation of this level or if the company is expected to face some further headwinds. GMG delivered a significantly high triple-digit growth rate in the past couple of years, compared to the less exciting rate expected this year. This may indicate a more sustainable level of growth as the company comes off a high-growth period. On the other hand, a more pessimistic outlook questions the company’s ability to continue as a high performer.
Next Steps:
For GMG, I’ve put together 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 GMG 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 GMG is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of GMG? 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.
