The First of Long Island Corporation (NASDAQ:FLIC) is expected to deliver a solid 29.47% in earnings growth per share over the next three years. At a current EPS of $1.413, this growth rate means shareholders can expect an impending EPS of $1.829. 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 FLIC
Can we expect FLIC to keep growing?
Analyst expectation from the stock’s 3 analysts is one of positive sentiment, with earnings estimated to expand from current levels of $1.413 to $1.829 over the next couple of years. This illustrates a relatively optimistic outlook in the near term, with a relatively solid earnings per share growth rate of 29.47% over the next few years. In the same period and net income is predicted to slightly grow from $34M to $44M in the next couple of years, growing by 29.47%. Though, at the current levels of revenue and profit, margins are certainly underwhelming.
Is this similar growth to the past?
The past can be an insightful 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. FLIC’s earnings growth in the last five years was a weaker 5.93%, indicating a relatively more bullish outlook for the company in the near future. This belief may be supported by turnaround initiatives implemented in the past, or previous investments coming to fruition.
For FLIC, there are three relevant 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 FLIC 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 FLIC is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of FLIC? 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.