Advertisement
U.S. markets open in 2 hours 11 minutes
  • S&P Futures

    5,307.00
    -1.25 (-0.02%)
     
  • Dow Futures

    40,144.00
    0.00 (0.00%)
     
  • Nasdaq Futures

    18,498.50
    -5.25 (-0.03%)
     
  • Russell 2000 Futures

    2,138.00
    -0.40 (-0.02%)
     
  • Crude Oil

    82.27
    +0.92 (+1.13%)
     
  • Gold

    2,231.20
    +18.50 (+0.84%)
     
  • Silver

    24.76
    +0.01 (+0.05%)
     
  • EUR/USD

    1.0794
    -0.0035 (-0.32%)
     
  • 10-Yr Bond

    4.1960
    0.0000 (0.00%)
     
  • Vix

    12.99
    +0.21 (+1.64%)
     
  • GBP/USD

    1.2621
    -0.0017 (-0.13%)
     
  • USD/JPY

    151.3690
    +0.1230 (+0.08%)
     
  • Bitcoin USD

    70,742.97
    +567.08 (+0.81%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,953.51
    +21.53 (+0.27%)
     
  • Nikkei 225

    40,168.07
    -594.66 (-1.46%)
     

Will GWA Group Limited’s (ASX:GWA) Earnings Grow Over The Next Year?

GWA Group Limited (ASX:GWA) is expected to deliver a small earnings per share contraction of -3.88% over the next three years. At a current EPS of A$0.203, this adverse movement means shareholders can expect an impending EPS of A$0.195. Today I will look at the latest data in order to investigate whether this negative future growth rate is plausible. Check out our latest analysis for GWA Group

Adverse times ahead

The next couple of years are a potential rough ride for GWA Group. Analysts are predicting the earnings to slide down to A$0.195 in the three year’s time from previous levels of around A$0.203. This would be a decline of -3.88%, so it will be an interesting ride. In the same period revenue is predicted to grow from A$446M to A$450M and net income is predicted to decline from A$54M to A$52M in the next couple of years. Though, future margins are predicted to be a respectable 11.46%.

ASX:GWA Past Future Earnings Nov 24th 17
ASX:GWA Past Future Earnings Nov 24th 17

Is the contraction built on solid basis?

The past can be an insightful indicator for future performance for a stock. We can determine whether this level of expected growth is too pessimistic or whether the company has consistently shown a negative trend. We are seeing an improvement for GWA’s earnings growth, from -16.03% over the past five years, even if it is still hovering in the negative region. This may mean the company’s outlook is looking more favourable than at first glance. Negative growth could indicate high investment and high growth potential for a small-cap like GWA. Less negative growth may mean it is beginning to reap benefits from recent investments.

Next Steps:

For GWA, I’ve compiled three key factors you should further examine:

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 GWA 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 GWA is currently mispriced by the market.

3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of GWA? 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.

Advertisement