In This Article:
In December 2017, Golden Agri-Resources Ltd (SGX:E5H) released its most recent earnings update. Generally, it seems that analyst forecasts are substantially optimistic, with a bottom line expansion of more than 100% in the upcoming year, against the previous 5-year average growth rate of -40.30%. Currently with earnings of US$74.03M, we can expect this to reach US$192.37M by 2019. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for Golden Agri-Resources in the longer term. Investors wanting to learn more about other aspects of the company should research its fundamentals here. View our latest analysis for Golden Agri-Resources
Can we expect Golden Agri-Resources to keep growing?
The view from 11 analysts over the next three years 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 understand the overall trajectory of E5H’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.
By 2021, E5H’s earnings should reach US$267.23M, from current levels of US$74.03M, resulting in an annual growth rate of 34.78%. EPS reaches $0.02 in the final year of forecast compared to the current $0.01 EPS today. Earnings growth appears to be a result of cost cutting activities, as revenues is expected to grow much slower than earnings. In 2021, E5H’s profit margin will have expanded from 0.99% to 3.13%.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Golden Agri-Resources, there are three key aspects you should further research:
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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.
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Valuation: What is Golden Agri-Resources 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 Golden Agri-Resources is currently mispriced by the market.
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Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Golden Agri-Resources? 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 pass 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.