What Should Investors Know About Mapletree Logistics Trust’s (SGX:M44U) Future?
In March 2018, Mapletree Logistics Trust (SGX:M44U) released its latest earnings announcement, which suggested that the business gained from a substantial tailwind, more than doubling its earnings from the prior year. Below, I’ve laid out key numbers on how market analysts predict Mapletree Logistics Trust’s earnings growth outlook over the next few years and whether the future looks even brighter than the past. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings. See our latest analysis for Mapletree Logistics Trust
Analysts’ expectations for the upcoming year seems pessimistic, with earnings decreasing by a double-digit -47.90%. In the next couple of years, earnings are expected to continue to be below today’s level, with a decline of -41.98% in 2020, eventually reaching S$260.59m in 2021.
Even though it’s useful to be aware of the growth each year relative to today’s figure, it may be more insightful to estimate the rate at which the business is rising or falling on average every year. The pro of this approach is that it removes the impact of near term flucuations and accounts for the overarching direction of Mapletree Logistics Trust’s earnings trajectory over time, fluctuate up and down. To calculate this rate, I put a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is -21.92%. This means that, we can anticipate Mapletree Logistics Trust will chip away at a rate of -21.92% every year for the next couple of years.
Next Steps:
For Mapletree Logistics Trust, I’ve compiled three important aspects 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 M44U 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 M44U is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of M44U? 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.
