What Should You Know About Ingenia Communities Group’s (ASX:INA) Growth?
After Ingenia Communities Group’s (ASX:INA) earnings announcement in June 2018, the consensus outlook from analysts appear somewhat bearish, as a 17% rise in profits is expected in the upcoming year, relative to the higher past 5-year average growth rate of 27%. With trailing-twelve-month net income at current levels of AU$34m, we should see this rise to AU$40m in 2019. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for Ingenia Communities Group in the longer term. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
See our latest analysis for Ingenia Communities Group
What can we expect from Ingenia Communities Group in the longer term?
Over the next three years, it seems the consensus view of the 3 analysts covering INA is skewed towards the positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To understand the overall trajectory of INA’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.
By 2021, INA’s earnings should reach AU$49m, from current levels of AU$34m, resulting in an annual growth rate of 13%. This leads to an EPS of A$0.20 in the final year of projections relative to the current EPS of A$0.17. The main reason for growth is a result of reduction in costs rather than purely top-line expansion as earnings is increasing at a faster rate. Margins is currently sitting at 18%, which is expected to expand to 19% by 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Ingenia Communities Group, I’ve put together three relevant factors 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.
Future Earnings: How does Ingenia Communities Group’s growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Ingenia Communities Group? 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 past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
