Flutter Entertainment PLC (ISE:FLTR): Immense Growth Potential?
Looking at Flutter Entertainment PLC's (ISE:FLTR) earnings update in December 2018, analyst forecasts seem fairly subdued, with profits predicted to rise by 6.3% next year against the higher past 5-year average growth rate of 20%. Currently with trailing-twelve-month earnings of UK£201m, we can expect this to reach UK£214m by 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Flutter Entertainment in the longer term. For those interested in more of an analysis of the company, you can research its fundamentals here.
View our latest analysis for Flutter Entertainment
How will Flutter Entertainment perform in the near future?
The 11 analysts covering FLTR view its longer term outlook with a positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To understand the overall trajectory of FLTR's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
This results in an annual growth rate of 15% based on the most recent earnings level of UK£201m to the final forecast of UK£307m by 2022. EPS reaches £3.64 in the final year of forecast compared to the current £2.42 EPS today. In 2022, FLTR's profit margin will have expanded from 11% to 12%.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Flutter Entertainment, I've put together three pertinent aspects 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 Flutter Entertainment 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 Flutter Entertainment is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Flutter Entertainment? 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.
