Yahoo Finance What Do Analysts Think About Abano Healthcare Group Limited’s (NZSE:ABA) Future?
Abano Healthcare Group Limited’s (NZSE:ABA) latest earnings announcement in May 2018 indicated that the business experienced a minor headwind with earnings falling from NZ$11m to NZ$10m, a change of -2.0%. Below is my commentary, albeit very simple and high-level, on how market analysts view Abano Healthcare Group’s earnings growth trajectory over the next couple of years and whether the future looks brighter. 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 Abano Healthcare Group
Analysts’ expectations for the upcoming year seems optimistic, with earnings expanding by a robust 39%. This growth seems to continue into the following year with rates arriving at double digit 59% compared to today’s earnings, and finally hitting NZ$19m by 2021.
While it is helpful to understand the rate of growth year by year relative to today’s value, it may be more insightful estimating the rate at which the business is moving on average every year. The pro of this approach is that we can get a better picture of the direction of Abano Healthcare Group’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To compute this rate, I put 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 16%. This means, we can anticipate Abano Healthcare Group will grow its earnings by 16% every year for the next few years.
Next Steps:
For Abano Healthcare Group, I’ve compiled three relevant aspects you should further research:
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 ABA’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 ABA? 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 past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
