Yahoo Finance How Do Analysts See Vista Group International Limited (NZSE:VGL) Performing In The Next 12 Months?
After Vista Group International Limited’s (NZSE:VGL) earnings announcement in June 2018, analysts seem highly optimistic, as a 64% rise in profits is expected in the upcoming year, against the previous 5-year average growth rate of 34%. Presently, with latest-twelve-month earnings at NZ$11m, we should see this growing to NZ$18m by 2019. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for Vista Group International in the longer term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
See our latest analysis for Vista Group International
How is Vista Group International going to perform in the near future?
The longer term expectations from the 4 analysts of VGL is tilted towards the positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To get an idea of the overall earnings growth trend for VGL, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
By 2021, VGL’s earnings should reach NZ$22m, from current levels of NZ$10m, resulting in an annual growth rate of 18%. EPS reaches NZ$0.15 in the final year of forecast compared to the current NZ$0.059 EPS today. The bottom-line growth seems to be caused by reduction in costs rather than purely top-line expansion as earnings is increasing at a faster rate. Margins is currently sitting at 9.1%, which is expected to expand to 12% by 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Vista Group International, I’ve compiled three essential aspects 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 Vista Group International 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 Vista Group International is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Vista Group International? 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.
