Helloworld Travel Limited (ASX:HLO)’s impressive earnings growth per share is expected to be a big double-digit 81.67% over the next three years. With the recent EPS being A$0.188, expected growth will push the upcoming EPS to A$0.341. To assess the reasonability of HLO’s earnings growth per share, we should look at its most recent growth rate delivered. Check out our latest analysis for Helloworld Travel

What can we expect from Helloworld Travel Limited (ASX:HLO) in the future?

According to the analysts covering the company, in a few years should bring some good growth prospects for Helloworld Travel. Expectation of stock’s 6 analysts is high, with earnings expected to rise from today’s level of A$0.188 to A$0.341 over the next couple of years. This indicates a relatively solid earnings per share growth rate of 81.67% over the next few years, which is an optimistic outlook in the near term. During the same time we should see the revenue grow from A$326M to A$375M and profits (net income) are predicted to grow from A$22M to A$39M in the next couple of years, growing by 81.67%. Furthermore, margins are on track to be a respectable 11.00% in the future.

Is this similar growth to the past?

The past can be a great indicator for future performance for a stock. We can determine whether this level of expected growth is highly excessive or whether the company has consistently exhibited strength. However, HLO’s earnings growth in the past couple of years has been negative at -158.26%. Although its past performance is not supportive of a positive growth trend, it could also mean HLO is growing off a lower base, meaning a higher growth rate is easier to achieve. This sign change in growth could indicate a turnaround initiative.

Next Steps:

For HLO, I’ve put together three relevant aspects you should look at:

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 HLO 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 HLO is currently mispriced by the market.

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