Yahoo Finance How Do Analysts See NCC Group plc (LON:NCC) Performing In The Years Ahead?
The most recent earnings update NCC Group plc’s (LON:NCC) released in May 2018 indicated that the business turned profitable again after experiencing negative earnings in the last financial year. Below, I’ve laid out key growth figures on how market analysts view NCC Group’s earnings growth trajectory over the next few years and whether the future looks brighter. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings.
View our latest analysis for NCC Group
Analysts’ expectations for next year seems buoyant, with earnings climbing by a robust 48%. This growth seems to continue into the following year with rates reaching double digit 81% compared to today’s earnings, and finally hitting UK£34m by 2021.
While it’s useful to understand the growth year by year relative to today’s level, it may be more beneficial to estimate the rate at which the earnings are growing every year, on average. The pro of this approach is that we can get a bigger picture of the direction of NCC Group’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate this rate, I’ve inserted 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 30%. This means, we can expect NCC Group will grow its earnings by 30% every year for the next couple of years.
Next Steps:
For NCC Group, I’ve compiled 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 NCC 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 NCC is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of NCC? 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.
