The most recent earnings announcement Ten Entertainment Group plc’s (LSE:TEG) released in December 2017 confirmed that the business benefited from a strong tailwind, leading to a double-digit earnings growth of 42.69%. Below, I’ve laid out key growth figures on how market analysts view Ten Entertainment Group’s earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in. Check out our latest analysis for Ten Entertainment Group
Market analysts’ consensus outlook for the coming year seems buoyant, with earnings growth more than doubling. Earnings continue to grow strongly in the next couple of years, finally generating UK£16.12M in 2021.
While it is helpful to be aware of the growth each year relative to today’s level, it may be more beneficial determining the rate at which the company is moving on average every year. The benefit of this technique is that we can get a better picture of the direction of Ten Entertainment Group’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 22.43%. This means that, we can anticipate Ten Entertainment Group will grow its earnings by 22.43% every year for the next couple of years.
For Ten Entertainment Group, 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 TEG 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 TEG is currently mispriced by the market.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of TEG? 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.