Joules Group Plc's (LON:JOUL) most recent earnings announcement in July 2019 signalled that the business benefited from a robust tailwind, eventuating to a double-digit earnings growth of 18%. Below is a brief commentary on my key takeaways on how market analysts perceive Joules 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.

View our latest analysis for Joules Group

Market analysts' consensus outlook for next year seems buoyant, with earnings growing by a robust 25%. This growth seems to continue into the following year with rates arriving at double digit 57% compared to today's earnings, and finally hitting UK£17m by 2022.

While it's helpful to be aware of the growth year by year relative to today's value, it may be more insightful to estimate the rate at which the company is moving every year, on average. The benefit of this method is that we can get a bigger picture of the direction of Joules 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 inserted a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 17%. This means that, we can assume Joules Group will grow its earnings by 17% every year for the next few years.

Next Steps:

For Joules Group, I've put together three essential 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 JOUL 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 JOUL is currently mispriced by the market.

Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of JOUL? 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.

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