In This Article:
The most recent earnings announcement Prodware's (EPA:ALPRO) released in December 2018 suggested that the company experienced a significant headwind with earnings deteriorating by -18%. Below, I've presented key growth figures on how market analysts predict Prodware's earnings growth trajectory over the next few years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.
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Market analysts' prospects for next year seems buoyant, with earnings expanding by a significant 78%. This level of earnings is expected to be maintained in the following year before decreasing in 2022 to €15m.
While it’s useful to be aware of the rate of growth each year relative to today’s value, it may be more valuable evaluating the rate at which the company is growing every year, on average. The advantage of this method is that we can get a bigger picture of the direction of Prodware's earnings trajectory over the long run, irrespective of near term fluctuations, be more volatile. To calculate this rate, I put 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 13%. This means that, we can assume Prodware will grow its earnings by 13% every year for the next few years.
Next Steps:
For Prodware, I've put together three pertinent 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 ALPRO 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 ALPRO 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 ALPRO? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
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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.