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ASA International Group PLC (LON:ASAI): Are Analysts Bullish?

Simply Wall St

The latest earnings release ASA International Group PLC's (LON:ASAI) announced in April 2019 signalled that the business faced a immense headwind with earnings falling by -17%. Below, I've laid out key growth figures on how market analysts perceive ASA International Group's earnings growth outlook over the next few years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.

See our latest analysis for ASA International Group

Market analysts' prospects for the coming year seems optimistic, with earnings rising by a robust 44%. This growth seems to continue into the following year with rates reaching double digit 89% compared to today’s earnings, and finally hitting US$57m by 2022.

LSE:ASAI Past and Future Earnings, August 29th 2019

While it’s useful to be aware of the rate of growth year by year relative to today’s figure, it may be more insightful to analyze the rate at which the business is growing every year, on average. The pro of this technique is that we can get a better picture of the direction of ASA International 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 the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 26%. This means that, we can anticipate ASA International Group will grow its earnings by 26% every year for the next few years.

Next Steps:

For ASA International Group, I've put together three pertinent aspects you should further research:

  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 ASAI 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 ASAI is currently mispriced by the market.
  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of ASAI? 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.