Will Mapletree Logistics Trust’s (SGX:M44U) Earnings Grow Over The Next Few Years?
Mapletree Logistics Trust’s (SGX:M44U) most recent earnings update in March 2018 indicated that the business experienced a major tailwind, more than doubling its earnings from the prior year. Today I want to provide a brief commentary on how market analysts view Mapletree Logistics Trust’s earnings growth outlook over the next few years and whether the future looks even brighter than the past. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in. Check out our latest analysis for Mapletree Logistics Trust
Market analysts’ prospects for this coming year seems pessimistic, with earnings falling by a double-digit -47.90%. In the next couple of years, earnings are expected to continue to be below today’s level, with a decline of -41.98% in 2020, eventually reaching S$260.59M in 2021.
While it is helpful to be aware of the growth each year relative to today’s figure, it may be more valuable gauging the rate at which the company is growing every year, on average. The advantage of this approach is that we can get a bigger picture of the direction of Mapletree Logistics Trust’s earnings trajectory over the long run, irrespective of near term fluctuations, fluctuate up and down. To compute this rate, I’ve inserted a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is -21.92%. This means, we can expect Mapletree Logistics Trust will chip away at a rate of -21.92% every year for the next few years.
Next Steps:
For Mapletree Logistics Trust, there are 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 M44U 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 M44U is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of M44U? 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 pass 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.
