What Do Analysts Think About Winpak Ltd.'s (TSE:WPK) Growth?
Based on Winpak Ltd.'s (TSE:WPK) earnings update in March 2019, it seems that analyst expectations are fairly bearish, with earnings expected to grow by 1.8% in the upcoming year against the higher past 5-year average growth rate of 9.2%. Currently with trailing-twelve-month earnings of US$109m, we can expect this to reach US$111m by 2020. Below is a brief commentary on the longer term outlook the market has for Winpak. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
Check out our latest analysis for Winpak
How is Winpak going to perform in the near future?
Over the next three years, it seems the consensus view of the 6 analysts covering WPK 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 WPK, 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, WPK's earnings should reach US$119m, from current levels of US$109m, resulting in an annual growth rate of 3.3%. EPS reaches $1.87 in the final year of forecast compared to the current $1.68 EPS today. Margins are currently sitting at 12%, which is expected to expand to 13% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Winpak, I've put together three fundamental aspects 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 Winpak 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 Winpak is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Winpak? 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.
