How Do Analysts See Nyrstar NV (EBR:NYR) Performing In The Year Ahead?
Looking at Nyrstar NV’s (ENXTBR:NYR) earnings update in December 2017, analysts seem extremely confident, with a bottom line expansion of more than 100% in the upcoming year, relative to the past 5-year average growth rate of -22.84%. By 2019, we can expect Nyrstar’s bottom line to reach €23.00M, a jump from the current €9.60M. I will provide a brief commentary around the figures and analyst expectations in the near term. Investors wanting to learn more about other aspects of the company should research its fundamentals here. View our latest analysis for Nyrstar
Exciting times ahead?
The view from 9 analysts over the next three years is one of 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 NYR’s earnings growth over these next few years.
This results in an annual growth rate of 31.30% based on the most recent earnings level of €9.60M to the final forecast of €71.75M by 2021. EPS reaches €0.66 in the final year of forecast compared to the current €0.1 EPS today. Growth in the bottom line seems to suggest cost cutting activities, as revenues is expected to grow much slower than earnings. With a current profit margin of 0.27%, this movement will result in a margin of 1.80% by 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Nyrstar, I’ve compiled three important aspects you should further research:
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 Nyrstar 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 Nyrstar is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Nyrstar? 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 pass 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.
