Belmond Ltd (BEL): What Does The Future Look Like?
Belmond Ltd (NYSE:BEL) is expected to deliver a gigantic earnings per share growth of over 300% the next three years. At a current EPS of $0.053, this growth rate means shareholders can expect an impending EPS of $0.288. To determine whether this growth rate expectation is justified, we should take a look at how the company has been performing in the past. See our latest analysis for BEL
How is BEL going to perform in the future?
One reason why investors are attracted to BEL is the high growth potential in the near future. Expectations from 3 analysts are high, with earnings per share forecasted to rise significantly from todays level of $0.053 to more than double over the next couple of years. In the same period and profits (net income) are predicted to shoot up from $5M to $29M in the next couple of years, more than doubling from the most recent level. Though, at the current levels of revenue and profit, margins are certainly underwhelming.
Is the growth built on solid basis?
The past can be a helpful indicator for future performance for a stock. We can determine whether this level of expected growth is excessive or whether the company continues to go from strength to strength. BEL’s triple-digit earnings growth the past couple of years indicates that the company’s past performance will continue to persist into the future. This means BEL has already proven its capacity to grow at an elevated rate, which should give investors higher conviction of analysts’ consensus prediction for the company’s future growth going forward.
Next Steps:
For BEL, I’ve put together three pertinent factors you should look at:
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 BEL 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 BEL is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of BEL? 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.
