What Should We Expect From MyState Limited’s (ASX:MYS) Earnings In The Next 12 Months?
In June 2018, MyState Limited (ASX:MYS) announced its earnings update. Overall, analyst consensus outlook appear cautiously optimistic, as a 4.3% increase in profits is expected in the upcoming year, against the past 5-year average growth rate of 0.9%. Presently, with latest-twelve-month earnings at AU$31m, we should see this growing to AU$33m by 2019. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for MyState in the longer term. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
See our latest analysis for MyState
How is MyState going to perform in the near future?
The view from 4 analysts over the next three years is one of 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 MYS, 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.
From the current net income level of AU$31m and the final forecast of AU$37m by 2021, the annual rate of growth for MYS’s earnings is 5.4%. EPS reaches A$0.41 in the final year of forecast compared to the current A$0.35 EPS today. In 2021, MYS’s profit margin will have expanded from 25% to 26%.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For MyState, I’ve put together three pertinent factors you should look at:
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 MyState 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 MyState is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of MyState? 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 past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
