Looking at Evolis SA's (EPA:ALTVO) earnings update on 31 December 2018, it seems that analyst forecasts are fairly optimistic, with earnings expected to grow by 42% in the upcoming year compared with the past 5-year average growth rate of 2.1%. With trailing-twelve-month net income at current levels of €6.1m, we should see this rise to €8.6m in 2020. Below is a brief commentary around Evolis's earnings outlook going forward, which may give you a sense of market sentiment for the company. For those interested in more of an analysis of the company, you can research its fundamentals here.
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View our latest analysis for Evolis
How is Evolis going to perform in the near future?
Longer term expectations from the 3 analysts covering ALTVO’s stock is one of positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of ALTVO's earnings growth over these next few years.
This results in an annual growth rate of 22% based on the most recent earnings level of €6.1m to the final forecast of €13m by 2022. This leads to an EPS of €2.45 in the final year of projections relative to the current EPS of €1.17. Margins are currently sitting at 7.5%, which is expected to expand to 13% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Evolis, I've put together three pertinent aspects you should further examine:
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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.
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Valuation: What is Evolis 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 Evolis is currently mispriced by the market.
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Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Evolis? 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.