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Metlifecare Limited (NZSE:MET): What Can We Expect In The Future?

Looking at Metlifecare Limited’s (NZSE:MET) earnings update in June 2018, analyst forecasts appear to be bearish, as a -9.4% fall in profits is expected in the upcoming year compared with the past 5-year average growth rate of 19%. Presently, with latest-twelve-month earnings at NZ$125m, we should see this fall to NZ$113m by 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. For those keen to understand more about other aspects of the company, you can research its fundamentals here.

Check out our latest analysis for Metlifecare

What can we expect from Metlifecare in the longer term?

The longer term view from the 5 analysts covering MET is one of positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To get an idea of the overall earnings growth trend for MET, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.

NZSE:MET Future Profit January 10th 19
NZSE:MET Future Profit January 10th 19

From the current net income level of NZ$125m and the final forecast of NZ$175m by 2022, the annual rate of growth for MET’s earnings is 13%. EPS reaches NZ$0.82 in the final year of forecast compared to the current NZ$0.59 EPS today. With a current profit margin of 109%, this movement will result in a margin of 115% by 2022.

Next Steps:

Future outlook is only one aspect when you’re building an investment case for a stock. For Metlifecare, I’ve put together three essential factors you should look at:

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  1. 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.

  2. Future Earnings: How does Metlifecare’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.

  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Metlifecare? 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.