Yahoo Finance Will Infratil Limited’s (NZSE:IFT) Earnings Grow In The Years Ahead?
The latest earnings announcement Infratil Limited (NZSE:IFT) released in March 2018 suggested that the business faced a slight headwind with earnings falling from NZ$48.1m to NZ$45.1m, a change of -6.2%. Below, I’ve laid out key numbers on how market analysts view Infratil’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 Infratil
Market analysts’ prospects for the coming year seems optimistic, with earnings rising by a robust 37.9%. This growth seems to continue into the following year with rates arriving at double digit 83.8% compared to today’s earnings and falls to NZ$41.0m by 2021.
Although it’s helpful to understand the growth year by year relative to today’s value, it may be more beneficial gauging the rate at which the company is rising or falling on average every year. The benefit of this method is that we can get a bigger picture of the direction of Infratil’s earnings trajectory over the long run, irrespective of near term fluctuations, be more volatile. To calculate this rate, I’ve inserted a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 13.3%. This means, we can anticipate Infratil will grow its earnings by 13.3% every year for the next couple of years.
Next Steps:
For Infratil, there are three important 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.
Valuation: What is IFT 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 IFT is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of IFT? 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.
