On 30 June 2019, Elanor Retail Property Fund (ASX:ERF) released its most recent earnings update. Generally, analyst consensus outlook appear pessimistic, as a 6.5% fall in profits is expected in the upcoming year relative to the past 5-year average growth rate of 17%. Presently, with latest-twelve-month earnings at AU$24m, we should see this fall to AU$22m by 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Elanor Retail Property Fund in the longer term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
What can we expect from Elanor Retail Property Fund in the longer term?
The longer term view from the 1 analysts covering ERF is one of 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 understand the overall trajectory of ERF'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 AU$24m and the final forecast of AU$24m by 2022, the annual rate of growth for ERF’s earnings is 1.1%. EPS reaches A$0.19 in the final year of forecast compared to the current A$0.18 EPS today. Margins are currently sitting at 75%, which is expected to expand to 98% by 2022.
Future outlook is only one aspect when you're building an investment case for a stock. For Elanor Retail Property Fund, I've put together three relevant aspects you should further examine:
- 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 Elanor Retail Property Fund 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 Elanor Retail Property Fund is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Elanor Retail Property Fund? 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.