Yahoo Finance Will Badger Daylighting Ltd.'s (TSE:BAD) Earnings Grow In The Year Ahead?
After Badger Daylighting Ltd.'s (TSE:BAD) earnings announcement in March 2019, analysts seem fairly confident, with earnings expected to grow by 24% in the upcoming year compared with the past 5-year average growth rate of 11%. By 2020, we can expect Badger Daylighting’s bottom line to reach CA$84m, a jump from the current trailing-twelve-month of CA$68m. Below is a brief commentary around Badger Daylighting's earnings outlook going forward, which may give you a sense of market sentiment for the company. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
View our latest analysis for Badger Daylighting
What can we expect from Badger Daylighting in the longer term?
Over the next three years, it seems the consensus view of the 7 analysts covering BAD is skewed towards the positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of BAD's earnings growth over these next few years.
From the current net income level of CA$68m and the final forecast of CA$128m by 2022, the annual rate of growth for BAD’s earnings is 18%. EPS reaches CA$3.51 in the final year of forecast compared to the current CA$1.83 EPS today. In 2022, BAD's profit margin will have expanded from 11% to 15%.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Badger Daylighting, I've put together three important factors 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 Badger Daylighting 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 Badger Daylighting is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Badger Daylighting? 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.
