Yahoo Finance How Do Analysts See Green Cross Health Limited (NZSE:GXH) Performing In The Next Couple Of Years?
Green Cross Health Limited’s (NZSE:GXH) latest earnings update in March 2018 confirmed that the business endured a substantial headwind with earnings declining by -15%. Below, I’ve laid out key numbers on how market analysts view Green Cross Health’s earnings growth trajectory over the next few years and whether the future looks brighter. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.
Check out our latest analysis for Green Cross Health
Market analysts’ prospects for the coming year seems positive, with earnings expanding by a robust 21%. This growth seems to continue into the following year with rates arriving at double digit 25% compared to today’s earnings, and finally hitting NZ$22m by 2021.
While it is useful to understand the growth rate each year relative to today’s value, it may be more valuable to determine the rate at which the business is moving every year, on average. The benefit of this approach is that it removes the impact of near term flucuations and accounts for the overarching direction of Green Cross Health’s earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I’ve appended 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 8.0%. This means, we can assume Green Cross Health will grow its earnings by 8.0% every year for the next few years.
Next Steps:
For Green Cross Health, there are three relevant factors you should further examine:
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.
Valuation: What is GXH 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 GXH is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of GXH? 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 past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
