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After Portland General Electric Company's (NYSE:POR) earnings announcement in March 2019, it seems that analyst expectations are fairly bearish, as a 0.6% rise in profits is expected in the upcoming year, relative to the higher past 5-year average growth rate of 6.3%. Currently with trailing-twelve-month earnings of US$212m, we can expect this to reach US$213m by 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
How will Portland General Electric perform in the near future?
The 8 analysts covering POR view its longer term outlook with a positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.
From the current net income level of US$212m and the final forecast of US$232m by 2022, the annual rate of growth for POR’s earnings is 3.6%. EPS reaches $2.72 in the final year of forecast compared to the current $2.38 EPS today. With a current profit margin of 11%, this movement will result in a margin of 11% by 2022.
Future outlook is only one aspect when you're building an investment case for a stock. For Portland General Electric, there are three essential 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 Portland General Electric 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 Portland General Electric is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Portland General Electric? 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 firstname.lastname@example.org. 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.