AIMS AMP Capital Industrial REIT’s (SGX:O5RU) latest earnings update in March 2018 confirmed that the business experienced a substantial tailwind, more than doubling its earnings from the prior year. Below, I’ve laid out key growth figures on how market analysts view AIMS AMP Capital Industrial REIT’s earnings growth trajectory over the next few years and whether the future looks even brighter than the past. 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 AIMS AMP Capital Industrial REIT
Market analysts’ consensus outlook for next year seems rather muted, with earnings expanding by a single digit 7.62%. The growth outlook in the following year seems much more buoyant with rates generating double digit 10.21% compared to today’s earnings, and finally hitting S$68.45m by 2021.
While it is helpful to be aware of the growth rate year by year relative to today’s level, it may be more insightful to gauge the rate at which the company is rising or falling on average every year. The pro of this method is that it removes the impact of near term flucuations and accounts for the overarching direction of AIMS AMP Capital Industrial REIT’s earnings trajectory over time, which may be more relevant for long term investors. To compute this rate, I put a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 3.19%. This means, we can anticipate AIMS AMP Capital Industrial REIT will grow its earnings by 3.19% every year for the next couple of years.
For AIMS AMP Capital Industrial REIT, I’ve compiled three relevant factors 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 O5RU 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 O5RU is currently mispriced by the market.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of O5RU? 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.