Yahoo Finance What Should Investors Know About GrandVision NV’s (AMS:GVNV) Future?
In June 2018, GrandVision NV (AMS:GVNV) released its earnings update. Generally, analyst consensus outlook appear cautiously optimistic, with profits predicted to increase by 20% next year against the past 5-year average growth rate of 9.8%. Currently with trailing-twelve-month earnings of €220m, we can expect this to reach €265m by 2019. I will provide a brief commentary around the figures and analyst expectations in the near term. For those interested in more of an analysis of the company, you can research its fundamentals here.
View our latest analysis for GrandVision
Exciting times ahead?
Over the next three years, it seems the consensus view of the 12 analysts covering GVNV is skewed towards the positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around 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 9.1% based on the most recent earnings level of €228m to the final forecast of €324m by 2021. EPS reaches €1.24 in the final year of forecast compared to the current €0.90 EPS today. The bottom-line growth seems to be caused by cost cutting activities, as revenues is expected to grow much slower than earnings. In 2021, GVNV’s profit margin will have expanded from 6.6% to 8.0%.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For GrandVision, there are three key 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!
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.
