Yahoo Finance GrandVision N.V. (AMS:GVNV): What Does The Future Look Like?
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Looking at GrandVision N.V.'s (AMS:GVNV) earnings update in December 2018, analysts seem cautiously optimistic, with earnings expected to grow by 15% in the upcoming year compared with the past 5-year average growth rate of 7.8%. With trailing-twelve-month net income at current levels of €216m, we should see this rise to €248m in 2020. Below is a brief commentary around GrandVision's earnings outlook going forward, which may give you a sense of market sentiment for the company. For those interested in more of an analysis of the company, you can research its fundamentals here.
View our latest analysis for GrandVision
Can we expect GrandVision to keep growing?
The longer term expectations from the 11 analysts of GVNV 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. I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of GVNV's earnings growth over these next few years.
This results in an annual growth rate of 11% based on the most recent earnings level of €216m to the final forecast of €301m by 2022. EPS reaches €1.2 in the final year of forecast compared to the current €0.85 EPS today. With a current profit margin of 5.8%, this movement will result in a margin of 7.0% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For GrandVision, I've put together three fundamental 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 GrandVision 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 GrandVision is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of GrandVision? 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.