What Do Analysts Think About The Future Of MyState Limited's (ASX:MYS)?
In December 2018, MyState Limited (ASX:MYS) released its earnings update. Generally, it seems that analyst forecasts are fairly optimistic, with earnings expected to grow by 2.7% in the upcoming year relative to the past 5-year average growth rate of 0.4%. With trailing-twelve-month net income at current levels of AU$31m, we should see this rise to AU$32m in 2020. Below is a brief commentary around MyState's earnings outlook going forward, which may give you a sense of market sentiment for the company. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
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Check out our latest analysis for MyState
Exciting times ahead?
Over the next three years, it seems the consensus view of the 4 analysts covering MYS 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 get an idea of the overall earnings growth trend for MYS, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
From the current net income level of AU$31m and the final forecast of AU$35m by 2022, the annual rate of growth for MYS’s earnings is 4.4%. This leads to an EPS of A$0.36 in the final year of projections relative to the current EPS of A$0.35. With a current profit margin of 25%, this movement will result in a margin of 26% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For MyState, I've put together three fundamental 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 MyState 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 MyState is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of MyState? 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.
