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Will Moneysupermarket.com Group PLC's (LON:MONY) Earnings Grow Over The Next Few Years?

Simply Wall St

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The most recent earnings release Moneysupermarket.com Group PLC's (LON:MONY) announced in December 2018 indicated that the business gained from a robust tailwind, leading to a double-digit earnings growth of 11%. Below, I've laid out key numbers on how market analysts view Moneysupermarket.com Group's earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings.

View our latest analysis for Moneysupermarket.com Group

Market analysts' consensus outlook for the upcoming year seems buoyant, with earnings increasing by a robust 11%. This growth seems to continue into the following year with rates reaching double digit 23% compared to today’s earnings, and finally hitting UK£116m by 2022.

LSE:MONY Past and Future Earnings, June 14th 2019

While it’s useful to understand the growth year by year relative to today’s level, it may be more valuable gauging the rate at which the company is moving on average every year. The benefit of this approach is that it removes the impact of near term flucuations and accounts for the overarching direction of Moneysupermarket.com Group's earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I've inserted a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 9.7%. This means that, we can assume Moneysupermarket.com Group will grow its earnings by 9.7% every year for the next few years.

Next Steps:

For Moneysupermarket.com Group, I've compiled three pertinent aspects you should further examine:

  1. 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.
  2. Valuation: What is MONY 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 MONY is currently mispriced by the market.
  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of MONY? 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.