What Are Analysts Saying About Property For Industry Limited’s (NZE:PFI) Earnings Outlook?
The latest earnings release Property For Industry Limited’s (NZSE:PFI) announced in December 2017 signalled that the business faced a immense headwind with earnings deteriorating by -58.12%. Today I want to provide a brief commentary on how market analysts view Property For Industry’s earnings growth trajectory over the next few years and whether the future looks brighter. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings. View our latest analysis for Property For Industry
Analysts’ outlook for the upcoming year seems rather muted, with earnings climbing by a single digit 0.78%. The following years do not look much more exciting, with earnings reaching NZ$54.00M in 2021, though growth rates are still positive relative to today’s bottom line value.
Although it’s useful to be aware of the growth year by year relative to today’s figure, it may be more beneficial to gauge the rate at which the business is rising or falling on average every year. The benefit of this technique is that it ignores near term flucuations and accounts for the overarching direction of Property For Industry’s earnings trajectory over time, which may be more relevant for long term investors. To compute this rate, I put a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 1.67%. This means that, we can presume Property For Industry will grow its earnings by 1.67% every year for the next few years.
Next Steps:
For Property For Industry, I’ve put together three important factors 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 PFI 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 PFI is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of PFI? 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.
