How Do Analysts See FDM Group (Holdings) PLC (LSE:FDM) Performing In The Year Ahead?
FDM Group (Holdings) PLC (LSE:FDM) is expected to deliver a solid 16.49% in earnings growth per share over the next three years. At a current EPS of £0.277, this growth rate means shareholders can expect an impending EPS of £0.323. I am going to look at the latest data on FDM to assess whether this expected growth is reasonable. View our latest analysis for FDM Group (Holdings)
What can we expect from FDM Group (Holdings) PLC (LSE:FDM) in the future?
FDM is covered by 3 analysts who by consensus are expecting earnings to increase from today’s level of £0.277 to £0.323 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 16.49% over the next few years. In the same period we should see the revenue grow from £220M to £278M and profit is predicted to escalate from £30M to £35M in the next couple of years, roughly growing 1.2x. However, margins look rather unappealing at the current levels of revenue and earnings.
Is the growth built on solid basis?
The past can be an insightful indicator for future performance for a stock. We can determine whether this level of expected growth is illustrative of future headwinds or whether the company continues to grapple with higher growth. FDM delivered a high double-digit growth rate in the past year, 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 FDM, there are three fundamental 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 FDM 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 FDM is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of FDM? 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.
