Yahoo Finance How Do Analysts See National Express Group PLC (LON:NEX) Performing In The Year Ahead?
As National Express Group PLC (LON:NEX) announced its earnings release on 31 December 2018, the consensus outlook from analysts appear somewhat bearish, with earnings expected to grow by 8.3% in the upcoming year relative to the higher past 5-year average growth rate of 19%. With trailing-twelve-month net income at current levels of UK£136m, we should see this rise to UK£147m in 2020. Below is a brief commentary on the longer term outlook the market has for National Express Group. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
View our latest analysis for National Express Group
How will National Express Group perform in the near future?
The longer term expectations from the 5 analysts of NEX is tilted towards the positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To understand the overall trajectory of NEX’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 6.9% based on the most recent earnings level of UK£136m to the final forecast of UK£164m by 2022. This leads to an EPS of £0.32 in the final year of projections relative to the current EPS of £0.27. With a current profit margin of 5.5%, this movement will result in a margin of 6.0% by 2022.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For National Express Group, there are three important 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 National Express Group 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 National Express Group is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of National Express Group? 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.
