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How Do Analysts See Ansell Limited (ASX:ANN) Performing Over The Next Year?

Simply Wall St

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After Ansell Limited's (ASX:ANN) earnings announcement in December 2018, analysts seem fairly confident, with earnings expected to grow by 23% in the upcoming year against the past 5-year average growth rate of 4.6%. Currently with trailing-twelve-month earnings of US$139m, we can expect this to reach US$171m by 2020. Below is a brief commentary around Ansell's earnings outlook going forward, which may give you a sense of market sentiment for the company. Investors wanting to learn more about other aspects of the company should research its fundamentals here.

See our latest analysis for Ansell

Can we expect Ansell to keep growing?

Longer term expectations from the 10 analysts covering ANN’s stock 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. I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of ANN's earnings growth over these next few years.

ASX:ANN Past and Future Earnings, June 28th 2019

This results in an annual growth rate of 8.2% based on the most recent earnings level of US$139m to the final forecast of US$200m by 2022. This leads to an EPS of $1.26 in the final year of projections relative to the current EPS of $0.96. In 2022, ANN's profit margin will have expanded from 9.3% to 12%.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For Ansell, I've put together three essential aspects you should further research:

  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 Ansell 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 Ansell is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Ansell? 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.