Yahoo Finance What Are Analysts Saying About Ryman Healthcare Limited's (NZSE:RYM) Future?
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On 31 March 2019, Ryman Healthcare Limited (NZSE:RYM) announced its latest earnings update. Overall, it seems that analyst forecasts are fairly pessimistic, with profits predicted to drop by 9.3% next year against the past 5-year average growth rate of 11%. With trailing-twelve-month net income at current levels of NZ$326m, the consensus growth rate suggests that earnings will decline to NZ$296m by 2020. Below is a brief commentary on the longer term outlook the market has for Ryman Healthcare. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
View our latest analysis for Ryman Healthcare
How is Ryman Healthcare going to perform in the near future?
The 6 analysts covering RYM view its longer term outlook with a 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 RYM'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.
This results in an annual growth rate of 15% based on the most recent earnings level of NZ$326m to the final forecast of NZ$463m by 2022. EPS reaches NZ$1.05 in the final year of forecast compared to the current NZ$0.65 EPS today. Margins are currently sitting at 85%, approximately the same as previous years. With analysts forecasting revenue growth of 0.40174 and RYM's net income growth expected to roughly track that, this company may add value for shareholders over time.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Ryman Healthcare, I've put together three essential 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.
Future Earnings: How does Ryman Healthcare's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Ryman Healthcare? 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.
