Yahoo Finance What Do Analysts Think About The Future Of Martinrea International Inc’s (TSE:MRE)?
Based on Martinrea International Inc’s (TSE:MRE) earnings update in June 2018, analyst consensus outlook appear cautiously subdued, with profits predicted to rise by 16% next year against the higher past 5-year average growth rate of 34%. Presently, with latest-twelve-month earnings at CA$180m, we should see this growing to CA$209m by 2019. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for Martinrea International in the longer term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
See our latest analysis for Martinrea International
What can we expect from Martinrea International in the longer term?
The view from 9 analysts over the next three years 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 reduce the year-on-year volatility of analyst earnings forecast, I’ve inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.
By 2021, MRE’s earnings should reach CA$246m, from current levels of CA$160m, resulting in an annual growth rate of 13%. EPS reaches CA$3.2 in the final year of forecast compared to the current CA$1.84 EPS today. Earnings growth appears to be a result of cost-cutting initiatives, since top-line is predicted to rise at a slower pace than earnings. Margins is currently sitting at 4.3%, which is expected to expand to 5.9% by 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Martinrea International, I’ve put together three fundamental aspects you should further research:
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 Martinrea International 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 Martinrea International is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Martinrea International? 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.
