What Do Analysts Think About Metlifecare Limited's (NZSE:MET) Future?
Looking at Metlifecare Limited's (NZSE:MET) earnings update on 30 June 2019, analysts seem fairly confident, with earnings expected to grow by 48% in the upcoming year against the past 5-year average growth rate of -2.2%. Currently with trailing-twelve-month earnings of NZ$39m, we can expect this to reach NZ$58m by 2020. Below is a brief commentary around Metlifecare's earnings outlook going forward, which may give you a sense of market sentiment for the company. For those interested in more of an analysis of the company, you can research its fundamentals here.
View our latest analysis for Metlifecare
Exciting times ahead?
The 5 analysts covering MET view its longer term outlook with a positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.
This results in an annual growth rate of 26% based on the most recent earnings level of NZ$39m to the final forecast of NZ$89m by 2022. EPS reaches NZ$0.48 in the final year of forecast compared to the current NZ$0.18 EPS today. Margins are currently sitting at 30%, which is expected to expand to 60% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Metlifecare, there are three relevant aspects you should look at:
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 Metlifecare 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 Metlifecare is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Metlifecare? 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.
