In December 2017, Public Joint Stock Company Magnit ( MISX:MGNT ) announced its most recent earnings update, which revealed that the business faced a significant headwind with earnings falling by -24.96%. Below, I’ve laid out key numbers on how market analysts perceive Magnit’s earnings growth outlook over the next couple of years and whether the future looks brighter. 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. Check out our latest analysis for Magnit
Analysts’ outlook for the upcoming year seems pessimistic, with earnings declining by -4.09%. But in the following year, there is a complete contrast in performance, with arriving at double digit 34.16% compared to today’s level and continues to increase to US$864.84M in 2021.
While it is useful to understand the growth each year relative to today’s level, it may be more valuable to estimate the rate at which the business is moving on average every year. The benefit of this technique is that we can get a better picture of the direction of Magnit’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 inserted 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 11.39%. This means, we can anticipate Magnit will grow its earnings by 11.39% every year for the next couple of years.
For Magnit, there are three key factors 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 MGNT 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 MGNT is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of MGNT? 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.