Will Grand City Properties SA.’s (ETR:GYC) Earnings Grow In The Year Ahead?
Looking at Grand City Properties SA.’s (XTRA:GYC) earnings update in December 2017, the consensus outlook from analysts appear bearish, as a -37.06% fall in profits is expected in the upcoming year compared with the past 5-year average growth rate of 32.95%. Presently, with earnings at €534.57M, we should see this fall to €336.44M by 2019. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for Grand City Properties in the longer term. Investors wanting to learn more about other aspects of the company should research its fundamentals here. See our latest analysis for Grand City Properties
Can we expect Grand City Properties to keep growing?
The longer term expectations from the 9 analysts of GYC is tilted towards the negative sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To understand the overall trajectory of GYC’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.
From the current net income level of €534.57M and the final forecast of €327.46M by 2021, the annual rate of growth for GYC’s earnings is -14.50%. This leads to an EPS of €2.27 in the final year of projections relative to the current EPS of €3.35. Contraction in the bottom line seems to suggest top-line expansion of 7.52%, which is predicted to lag cost growth leading up to 2021. Furthermore, the current 106.20% margin is expected to contract to 53.27% by the end of 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Grand City Properties, there are three essential factors you should further research:
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 Grand City Properties 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 Grand City Properties is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Grand City Properties? 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.
