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Since NNIT A/S (CPH:NNIT) released its earnings in December 2018, it seems that analyst forecasts are fairly optimistic, with earnings expected to grow by 4.0% in the upcoming year relative to the past 5-year average growth rate of 2.5%. With trailing-twelve-month net income at current levels of ø236m, we should see this rise to ø245m in 2020. Below is a brief commentary on the longer term outlook the market has for NNIT. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
View our latest analysis for NNIT
Exciting times ahead?
Over the next three years, it seems the consensus view of the 3 analysts covering NNIT is skewed towards the positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To understand the overall trajectory of NNIT's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
By 2022, NNIT's earnings should reach ø281m, from current levels of ø236m, resulting in an annual growth rate of 6.3%. This leads to an EPS of DKK11.29 in the final year of projections relative to the current EPS of DKK9.6. Margins are currently sitting at 7.8%, approximately the same as previous years. With analysts forecasting revenue growth of 0.17832 and NNIT's net income growth expected to roughly track that, this company may add value for shareholders over time.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For NNIT, I've put together three important aspects you should look at:
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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 NNIT 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 NNIT 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 NNIT? 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.