What Are Analysts Saying About oOh!media Limited’s (ASX:OML) Future?
On 31 December 2018, oOh!media Limited (ASX:OML) released its earnings update. Generally, the consensus outlook from analysts appear highly confident, with profits predicted to ramp up by an impressive 70% next year, compared with the previous 5-year average growth rate of 58%. Currently with trailing-twelve-month earnings of AU$32m, we can expect this to reach AU$54m by 2020. Below is a brief commentary on the longer term outlook the market has for oOh!media. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
See our latest analysis for oOh!media
Exciting times ahead?
The longer term view from the 6 analysts covering OML is one of positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To get an idea of the overall earnings growth trend for OML, 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, OML’s earnings should reach AU$78m, from current levels of AU$32m, resulting in an annual growth rate of 26%. This leads to an EPS of A$0.34 in the final year of projections relative to the current EPS of A$0.16. With a current profit margin of 6.5%, this movement will result in a margin of 11% by 2022.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For oOh!media, I’ve compiled three essential factors you should further research:
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 oOh!media 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 oOh!media is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of oOh!media? 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.
