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After nmcn plc's (LON:NMCN) earnings announcement in December 2018, it seems that analyst forecasts are fairly optimistic, with profits predicted to increase by 24% next year, though this is relatively lower than the previous 5-year average earnings growth of 68%. With trailing-twelve-month net income at current levels of UK£4.8m, we should see this rise to UK£6.0m in 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for nmcn in the longer term. For those interested in more of an analysis of the company, you can research its fundamentals here.
How will nmcn perform in the near future?
The view from 1 analysts over the next three years is one of positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To get an idea of the overall earnings growth trend for NMCN, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
By 2022, NMCN's earnings should reach UK£6.7m, from current levels of UK£4.8m, resulting in an annual growth rate of 9.9%. EPS reaches £0.62 in the final year of forecast compared to the current £0.48 EPS today. In 2022, NMCN's profit margin will have expanded from 1.4% to 1.8%.
Future outlook is only one aspect when you're building an investment case for a stock. For nmcn, I've compiled three key 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 nmcn 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 nmcn is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of nmcn? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.