Mr. DIY Group (M) Berhad (KLSE:MRDIY) reported its latest annual results last week. Now is a good time for investors to see if the business is performing as expected. Results appear to be mixed. Although sales were slightly below analysts' expectations of RM4.4 billion, statutory profit was in line with expectations at RM0.059 per share. This is an important time for investors, as they can track a company's performance in the report, see what experts predict for next year, and see if there have been any changes to expectations for the business. We thought our readers might find interesting the latest (statutory) post-earnings forecasts by the analysts for next year.
Check out our latest analysis for Mr DIY Group (M) Berhad.
Following the latest results, the 14 analysts covering Mr DIY Group (M) Berhad are now predicting 2024 revenues of RM5.1b. If achieved, this would reflect a solid 18% improvement in earnings compared to the previous 12 months. Earnings per share are expected to rise 16% to RM0.069. Prior to the release of the results, analysts had expected 2024 sales to be RM5.19 billion and earnings per share (EPS) to be RM0.07. The consensus analysts appear to have seen nothing in these results that would change their view. The business is so, given that there are no major changes to estimates.
So it's probably no surprise to learn that the consensus price target is essentially unchanged at RM2.06. The consensus price target is just the average of the individual analyst targets, so it's useful to see how wide the range of underlying forecasts is. Currently, the most bullish analyst values ​​the DIY Group (M) Berhad stock at RM2.60 per share, while the most bearish values ​​it at RM1.53. doing. There are certainly some differing views on the stock price, but in our view the range of estimates is not wide enough to suggest that the situation is unpredictable.
You can also look at the bigger picture, including how these forecasts compare to past performance and whether forecasts are more or less bullish compared to other companies in its industry. Analysts say the same thing will happen in the period to the end of 2024, with sales expected to grow at an annualized rate of 18%. This is consistent with an annual growth rate of 18% over the past five years. In contrast, our data shows that other companies in a similar industry (covered by analysts) are forecast to see their revenue grow at 8.5% per year. So it's clear that Mr DIY Group (M) Berhad is projected to grow significantly faster than its industry.
conclusion
The most obvious conclusion is that there haven't been any significant changes to the company's business outlook recently, with analysts keeping their revenue estimates unchanged from previous estimates. Fortunately, there are no major changes to revenue forecasts, and the business is still expected to grow faster than the broader industry. There was no actual change to the consensus target price, suggesting that the intrinsic value of the business has not changed significantly at the latest estimate.
With that in mind, you probably won't be able to jump to any conclusions about Mr DIY Group (M) Berhad. Long-term profitability is far more important than next year's profits. At Simply Wall St, we have all analyst forecasts for Mr DIY Group (M) Berhad up to 2026, available for free on our platform.
What about risks? Every company has them and we found that 1 warning sign for Mr DIY Group (M) Berhad you should know about.
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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.