Yahoo Finance What Do Analysts Think About Port of Tauranga Limited’s (NZSE:POT) Growth?
Since Port of Tauranga Limited (NZSE:POT) released its earnings in June 2018, analysts seem cautiously optimistic, as a 7.1% increase in profits is expected in the upcoming year, against the past 5-year average growth rate of -0.2%. Currently with trailing-twelve-month earnings of NZ$94m, we can expect this to reach NZ$101m by 2019. Below is a brief commentary around Port of Tauranga’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.
Check out our latest analysis for Port of Tauranga
Exciting times ahead?
The longer term view from the 6 analysts covering POT is one of positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To reduce the year-on-year volatility of analyst earnings forecast, I’ve inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.
From the current net income level of NZ$94m and the final forecast of NZ$112m by 2021, the annual rate of growth for POT’s earnings is 5.8%. This leads to an EPS of NZ$0.16 in the final year of projections relative to the current EPS of NZ$0.14. Margins are currently sitting at 33%, which is expected to expand to 34% by 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Port of Tauranga, I’ve put together three relevant factors you should look at:
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 Port of Tauranga 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 Port of Tauranga is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Port of Tauranga? 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.
