Yahoo Finance What Should You Know About The Future Of Port of Tauranga Limited's (NZSE:POT)?
As Port of Tauranga Limited (NZSE:POT) released its earnings announcement on 30 June 2019, the consensus outlook from analysts appear somewhat bearish, as a 4.7% rise in profits is expected in the upcoming year, relative to the higher past 5-year average growth rate of 5.3%. By 2020, we can expect Port of Tauranga’s bottom line to reach NZ$105m, a jump from the current trailing-twelve-month of NZ$101m. Below is a brief commentary on the longer term outlook the market has for Port of Tauranga. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
Check out our latest analysis for Port of Tauranga
Exciting times ahead?
Over the next three years, it seems the consensus view of the 6 analysts covering POT is skewed towards the positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To understand the overall trajectory of POT'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 5.5% based on the most recent earnings level of NZ$101m to the final forecast of NZ$118m by 2022. EPS reaches NZ$0.18 in the final year of forecast compared to the current NZ$0.15 EPS today. Margins are currently sitting at 32%, which is expected to expand to 33% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Port of Tauranga, I've compiled three pertinent 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.
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!
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.
