In This Article:
The most recent earnings release Ingenia Communities Group's (ASX:INA) announced in August 2019 revealed that the business faced a immense headwind with earnings falling by -14%. Below, I've presented key growth figures on how market analysts perceive Ingenia Communities Group's earnings growth outlook over the next couple of years and whether the future looks brighter. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings.
Check out our latest analysis for Ingenia Communities Group
Market analysts' prospects for the upcoming year seems buoyant, with earnings growing by a significant 96%. Earnings are predicted to shoot up to around AU$60m in the following year before plateauing, heading into 2022.
Even though it is helpful to be aware of the growth rate year by year relative to today’s figure, it may be more valuable to determine the rate at which the earnings are moving on average every year. The advantage of this technique is that we can get a better picture of the direction of Ingenia Communities Group's earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate this rate, I've appended 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 15%. This means, we can assume Ingenia Communities Group will grow its earnings by 15% every year for the next couple of years.
Next Steps:
For Ingenia Communities Group, there are three fundamental aspects you should look at:
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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 INA 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 INA 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 INA? 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.