Yahoo Finance Frenkel Topping Group Plc (LON:FEN): What Does The Future Look Like?
Frenkel Topping Group Plc’s (LON:FEN) most recent earnings update in December 2017 indicated that the business gained from a significant tailwind, more than doubling its earnings from the prior year. Below is a brief commentary on my key takeaways on how market analysts view Frenkel Topping Group’s earnings growth outlook over the next few years and whether the future looks even brighter than the past. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings. See our latest analysis for Frenkel Topping Group
Analysts’ outlook for next year seems buoyant, with earnings increasing by a robust 30.56%. This growth seems to continue into the following year with rates arriving at double digit 56.68% compared to today’s earnings, and finally hitting UK£2.90m by 2021.
Although it is helpful to be aware of the growth each year relative to today’s value, it may be more valuable analyzing the rate at which the business is growing every year, on average. The pro of this approach is that we can get a better picture of the direction of Frenkel Topping 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 analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 20.40%. This means that, we can anticipate Frenkel Topping Group will grow its earnings by 20.40% every year for the next couple of years.
Next Steps:
For Frenkel Topping Group, I’ve compiled three key aspects you should further examine:
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 FEN 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 FEN is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of FEN? 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.
