What Should Investors Know About NV5 Global, Inc.’s (NASDAQ:NVEE) Future?
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Since NV5 Global, Inc. (NASDAQ:NVEE) released its earnings in September 2018, it seems that analyst forecasts are fairly optimistic, with earnings expected to grow by 21% in the upcoming year, though this is noticeably lower than the previous 5-year average earnings growth of 46%. With trailing-twelve-month net income at current levels of US$24m, we should see this rise to US$29m in 2020. 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.
Check out our latest analysis for NV5 Global
Can we expect NV5 Global to keep growing?
The longer term expectations from the 3 analysts of NVEE is tilted towards the positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. 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 NVEE’s earnings growth over these next few years.
From the current net income level of US$24m and the final forecast of US$48m by 2022, the annual rate of growth for NVEE’s earnings is 23%. EPS reaches $4.7 in the final year of forecast compared to the current $2.36 EPS today. With a current profit margin of 7.2%, this movement will result in a margin of 9.8% by 2022.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For NV5 Global, I’ve compiled three essential 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 NV5 Global 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 NV5 Global is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of NV5 Global? 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.
