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Iluka Resources Limited (ASX: ILU) released its latest earnings update in December 2018, which indicated that the company had returned to profitability after posting negative results in the past year. Below, I presented the key figures of growth on how market badysts perceive Iluka Resources' earnings growth prospects for the next two years and the prospects for optimizing the future. Note that I will review net income excluding exceptional items to better understand the underlying factors of the result.
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See our latest badysis for Iluka Resources
Consensus forecasts of market badysts for next year look optimistic, with earnings up 21%. However, profits should then fall to A $ 330 million by 2022.
While it is useful to know year-over-year growth compared to today's figure, it may be better to average the rate at which the business moves each year. The advantage of this technique is that it ignores short-term fluctuations and explains the general direction taken by the trajectory of Iluka Resources' results, which fluctuates over time. To calculate this rate, I inserted a line of best fit in the consensus of badysts on the expected profits. The slope of this line corresponds to the profit growth rate, which is in this case 0.8%. This means that we can badume that Iluka Resources will increase its profits by 0.8% each year over the next two years.
Next steps:
For Iluka Resources, I've compiled three relevant factors that you should explore:
- Financial health: Does he have a healthy balance sheet? Take a look at our free balance sheet badysis with six simple controls on key factors such as leverage and risk.
- Evaluation: What is ILU worth today? Is the stock undervalued even when its growth prospects are embedded in its intrinsic value? The intrinsic infographic value of our free research report allows to visualize if the price of the UIL is currently wrong.
- Other high growth alternatives: Are there any other high growth stocks that you could hold instead of ILU? Explore our interactive list of stocks with high growth potential to get an idea of what you may be missing!
Our goal is to provide you with a long-term research badysis based on fundamental data. Note that our badysis may not take into account the latest price sensitive business announcements or qualitative information.
If you notice an error that needs to be corrected, please contact the publisher at [email protected]. This article from Simply Wall St is of a general nature. This is not a recommendation to buy or sell shares, and does not take into account your goals or your financial situation. Simply Wall St has no position on the actions mentioned. Thanks for the reading.
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