IntegraFin Holdings plc (LON:IHP): Will The Growth Last?
As IntegraFin Holdings plc (LON:IHP) released its earnings announcement on 31 March 2019, analyst forecasts seem in-line with its track record, as upcoming earnings growth is expected to be 19% next year, similar to the range of average earnings growth for the past five years of 19% per year. By 2020, we can expect IntegraFin Holdings’s bottom line to reach UK£39m, a jump from the current trailing-twelve-month of UK£33m. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for IntegraFin Holdings in the longer term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
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How will IntegraFin Holdings perform in the near future?
Longer term expectations from the 4 analysts covering IHP’s stock 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. I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of IHP's earnings growth over these next few years.
This results in an annual growth rate of 15% based on the most recent earnings level of UK£33m to the final forecast of UK£52m by 2022. EPS reaches £0.17 in the final year of forecast compared to the current £0.099 EPS today. In 2022, IHP's profit margin will have expanded from 36% to 42%.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For IntegraFin Holdings, I've compiled three important 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 IntegraFin Holdings 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 IntegraFin Holdings is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of IntegraFin Holdings? 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.
