What Should You Know About TORC Oil & Gas Ltd.'s (TSE:TOG) Future?
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In December 2018, TORC Oil & Gas Ltd. (TSE:TOG) released its earnings update. Generally, the consensus outlook from analysts appear pessimistic, with profits predicted to drop by -2.6% next year against the past 5-year average growth rate of 11%. Currently with a trailing-twelve-month profit of CA$17m, the consensus growth rate suggests that earnings will drop to CA$16m by 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for TORC Oil & Gas in the longer term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
Check out our latest analysis for TORC Oil & Gas
Exciting times ahead?
The view from 4 analysts over the next three years 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 TOG'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, TOG's earnings should reach CA$45m, from current levels of CA$17m, resulting in an annual growth rate of 42%. EPS reaches CA$0.20 in the final year of forecast compared to the current CA$0.082 EPS today. In 2022, TOG's profit margin will have expanded from 3.8% to 6.2%.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For TORC Oil & Gas, I've compiled three pertinent 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 TORC Oil & Gas 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 TORC Oil & Gas is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of TORC Oil & Gas? 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 editorial-team@simplywallst.com. 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.
