Yahoo Finance Will Vista Group International Limited's (NZSE:VGL) Earnings Grow In The Year Ahead?
As Vista Group International Limited (NZSE:VGL) released its earnings announcement on 30 June 2019, the consensus outlook from analysts appear highly confident, with earnings expected to grow by a high double-digit of 66% in the upcoming year, against the past 5-year average growth rate of 12%. Presently, with latest-twelve-month earnings at NZ$12m, we should see this growing to NZ$20m by 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
View our latest analysis for Vista Group International
Can we expect Vista Group International to keep growing?
The view from 5 analysts over the next three years 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. To understand the overall trajectory of VGL'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.
This results in an annual growth rate of 16% based on the most recent earnings level of NZ$12m to the final forecast of NZ$26m by 2022. EPS reaches NZ$0.17 in the final year of forecast compared to the current NZ$0.074 EPS today. With a current profit margin of 9.4%, this movement will result in a margin of 14% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Vista Group International, there are three fundamental aspects you should look at:
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!
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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.
