How Do Analysts See World Acceptance Corporation (NASDAQ:WRLD) Performing Over The Next Year?

Simply Wall St - finance.yahoo.com Posted 5 years ago
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Since World Acceptance Corporation (NASDAQ:WRLD) released its earnings in December 2018, analysts seem cautiously optimistic, with profits predicted to increase by -7.2% next year relative to the past 5-year average growth rate of -15%. With trailing-twelve-month net income at current levels of US$54m, we should see this rise to US$50m in 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for World Acceptance in the longer term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.

View our latest analysis for World Acceptance

Exciting times ahead?

The view from 4 analysts over the next three years is one of positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To get an idea of the overall earnings growth trend for WRLD, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.

NasdaqGS:WRLD Past and Future Earnings, April 29th 2019
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This results in an annual growth rate of 20% based on the most recent earnings level of US$54m to the final forecast of US$64m by 2022. This leads to an EPS of $9.13 in the final year of projections relative to the current EPS of $6.11. In 2022, WRLD's profit margin will have expanded from 9.8% to 11%.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For World Acceptance, I've compiled three relevant factors you should further examine:

  1. 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.
  2. Valuation: What is World Acceptance 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 World Acceptance is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of World Acceptance? 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 [email protected]. 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.