Based on Ingenia Communities Group's (ASX:INA) earnings update on 30 June 2019, analysts seem highly optimistic, with earnings expected to grow by a high double-digit of 96% in the upcoming year, relative to the historical 5-year average growth rate of 15%. Presently, with latest-twelve-month earnings at AU$29m, we should see this growing to AU$58m by 2020. 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.
How will Ingenia Communities Group perform in the near future?
The 3 analysts covering INA view its longer term outlook with a positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. 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 2022, INA's earnings should reach AU$61m, from current levels of AU$29m, resulting in an annual growth rate of 15%. EPS reaches A$0.26 in the final year of forecast compared to the current A$0.13 EPS today. In 2022, INA's profit margin will have expanded from 13% to 24%.
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 essential 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.
- Valuation: What is Ingenia Communities Group 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 Ingenia Communities Group is currently mispriced by the market.
- 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!
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.