What Do Analysts Think About Financial Institutions Inc’s (FISI) Future?
Financial Institutions Inc (NASDAQ:FISI) is expected to deliver a low, single-digit 3.46% in earnings growth per share over the next three years. At a current EPS of $2.059, this growth rate means shareholders can expect an impending EPS of $2.13. To determine whether this growth rate expectation is justified, we should take a look at how the company has been performing in the past. View our latest analysis for Financial Institutions
How is Financial Institutions going to perform in the future?
Analyst expectation from the stock’s 3 analysts is one of positive sentiment, with earnings estimated to expand from current levels of $2.059 to $2.13 over the next couple of years. This indicates a relatively solid earnings per share growth rate of 3.46% over the next few years, which is an optimistic outlook in the near term. During the same time and profit is predicted to escalate from $30M to $31M in the next couple of years, roughly staying around the same level. However, margins look rather unappealing at the current levels of revenue and earnings.
Basis for the growth
The past can be a great indicator for future performance for a stock. We can determine whether this level of expected growth indicates a change in tides or if the company continues to struggle reaching higher growth. FISI’s earnings growth in the last five years was a low 5.49%, indicating a relatively more upbeat attitude towards the company in the upcoming year. This belief may be supported by turnaround initiatives implemented in the past, or previous investments coming to fruition.
Next Steps:
For FISI, I’ve put together three pertinent 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 FISI 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 FISI is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of FISI? 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.
