Yahoo Finance What Should Investors Know About Ryman Healthcare Limited's (NZSE:RYM) Future?
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Ryman Healthcare Limited's (NZSE:RYM) most recent earnings update in March 2019 suggested that the company faced a substantial headwind with earnings deteriorating by -16%. Below, I've laid out key numbers on how market analysts view Ryman Healthcare's earnings growth outlook 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.
View our latest analysis for Ryman Healthcare
Market analysts' consensus outlook for the coming year seems pessimistic, with earnings declining by a double-digit -13%. However, the next few years seem to illustrate a completely different picture, with expected earnings growth rates generating double digit 14% compared to today’s level and continues to increase.
Even though it’s informative understanding the rate of growth year by year relative to today’s figure, it may be more valuable to analyze the rate at which the company is rising or falling on average every year. The benefit of this technique is that we can get a better picture of the direction of Ryman Healthcare'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've appended 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 14%. This means that, we can presume Ryman Healthcare will grow its earnings by 14% every year for the next few years.
Next Steps:
For Ryman Healthcare, there are three fundamental factors 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 RYM'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 RYM? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
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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.
