In December 2018, Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) released its earnings update. Generally, analysts seem fairly confident, as a 30% increase in profits is expected in the upcoming year, though this is comparatively lower than the past 5-year average earnings growth of 36%. With trailing-twelve-month net income at current levels of US$339m, we should see this rise to US$440m in 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Gaming and Leisure Properties in the longer term. For those interested in more of an analysis of the company, you can research its fundamentals here.
What can we expect from Gaming and Leisure Properties in the longer term?
Over the next three years, it seems the consensus view of the 11 analysts covering GLPI is skewed towards the positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To get an idea of the overall earnings growth trend for GLPI, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
By 2022, GLPI's earnings should reach US$467m, from current levels of US$339m, resulting in an annual growth rate of 12%. EPS reaches $2.1 in the final year of forecast compared to the current $1.59 EPS today. With a current profit margin of 32%, this movement will result in a margin of 38% by 2022.
Future outlook is only one aspect when you're building an investment case for a stock. For Gaming and Leisure Properties, there are three essential factors you should further examine:
- 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 Gaming and Leisure Properties 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 Gaming and Leisure Properties is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Gaming and Leisure Properties? 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 firstname.lastname@example.org. 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.