What Do Analysts Think About N.V. Nederlandsche Apparatenfabriek Nedap’s (AMS:NEDAP) Future?
The most recent earnings update N.V. Nederlandsche Apparatenfabriek Nedap’s (AMS:NEDAP) released in December 2018 indicated that the company gained from a large tailwind, leading to a high double-digit earnings growth of 91%. Below, I’ve presented key growth figures on how market analysts view N.V. Nederlandsche Apparatenfabriek Nedap’s earnings growth trajectory over the next few years and whether the future looks even brighter than the past. 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.
Check out our latest analysis for N.V. Nederlandsche Apparatenfabriek Nedap
Market analysts’ prospects for this coming year seems rather subdued, with earnings climbing by a single digit 9.7%. The growth outlook in the following year seems much more positive with rates generating double digit 28% compared to today’s earnings, and finally hitting €28m by 2022.
Although it’s useful to understand the rate of growth year by year relative to today’s figure, it may be more insightful evaluating the rate at which the earnings are rising or falling every year, on average. The benefit of this technique is that we can get a bigger picture of the direction of N.V. Nederlandsche Apparatenfabriek Nedap’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 put 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 17%. This means that, we can expect N.V. Nederlandsche Apparatenfabriek Nedap will grow its earnings by 17% every year for the next few years.
Next Steps:
For N.V. Nederlandsche Apparatenfabriek Nedap, I’ve compiled three key factors 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 NEDAP 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 NEDAP is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of NEDAP? 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.
