In December 2017, Public Joint Stock Company Territorial Generating Company No 1 (MISX:TGKA) released its latest earnings announcement, which showed that the business benefited from a robust tailwind, leading to a double-digit earnings growth of 41.22%. Below, I’ve laid out key growth figures on how market analysts perceive Territorial Generating Company No. 1’s earnings growth outlook over the next few years and whether the future looks even brighter than the past. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings. See our latest analysis for Territorial Generating Company No. 1
Analysts’ expectations for the coming year seems rather subdued, with earnings expanding by a single digit 4.80%. The growth outlook in the following year seems much more buoyant with rates reaching double digit 17.23% compared to today’s earnings, and finally hitting RUРУБ9.83B by 2021.
Even though it’s informative understanding the rate of growth year by year relative to today’s value, it may be more insightful estimating the rate at which the earnings are rising or falling every year, on average. The advantage of this technique is that we can get a bigger picture of the direction of Territorial Generating Company No. 1’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To compute this rate, I’ve inserted a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 1.40%. This means, we can presume Territorial Generating Company No. 1 will grow its earnings by 1.40% every year for the next few years.
For Territorial Generating Company No. 1, I’ve compiled three essential aspects 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 TGKA 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 TGKA is currently mispriced by the market.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of TGKA? 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.