Yahoo Finance How Do Analysts See Tourmaline Oil Corp. (TSE:TOU) Performing Over The Next Few Years?
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Tourmaline Oil Corp.'s (TSE:TOU) announced its latest earnings update in December 2018, which confirmed that the company benefited from a strong tailwind, eventuating to a double-digit earnings growth of 16%. Below, I've presented key growth figures on how market analysts view Tourmaline Oil's earnings growth trajectory over the next few years and whether the future looks even brighter than the past. 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.
View our latest analysis for Tourmaline Oil
Market analysts' prospects for this coming year seems pessimistic, with earnings decreasing by a double-digit -43%. In the next couple of years, earnings will begin to improve, expanding year on year, and reaching CA$554m by 2022.
Even though it’s helpful to understand the rate of growth each year relative to today’s level, it may be more beneficial analyzing the rate at which the business is rising or falling every year, on average. The advantage of this method is that it ignores near term flucuations and accounts for the overarching direction of Tourmaline Oil's earnings trajectory over time, 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 12%. This means that, we can presume Tourmaline Oil will grow its earnings by 12% every year for the next few years.
Next Steps:
For Tourmaline Oil, there are three key aspects you should look at:
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 TOU 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 TOU is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of TOU? 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.
