EMIS Group plc (LON:EMIS): What We Can Expect From This Growth Stock
After EMIS Group plc's (LON:EMIS) earnings announcement in December 2018, analyst consensus outlook appear cautiously optimistic, as a 16% increase in profits is expected in the upcoming year, compared with the past 5-year average growth rate of -9.0%. By 2020, we can expect EMIS Group’s bottom line to reach UK£26m, a jump from the current trailing-twelve-month of UK£23m. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for EMIS Group in the longer term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
View our latest analysis for EMIS Group
Can we expect EMIS Group to keep growing?
Longer term expectations from the 4 analysts covering EMIS’s stock is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To get an idea of the overall earnings growth trend for EMIS, 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, EMIS's earnings should reach UK£32m, from current levels of UK£23m, resulting in an annual growth rate of 12%. This leads to an EPS of £0.52 in the final year of projections relative to the current EPS of £0.36. In 2022, EMIS's profit margin will have expanded from 13% to 19%.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For EMIS Group, I've compiled three fundamental aspects you should further examine:
Valuation: What is EMIS Group 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 EMIS Group is currently mispriced by the market.
Management:Have insiders been ramping up their shares to take advantage of the market's sentiment for EMIS Group's future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of EMIS Group? 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.
