Since Adval Tech Holding AG (VTX:ADVN) released its earnings in December 2018, analyst consensus outlook appear cautiously subdued, as a 19% rise in profits is expected in the upcoming year, compared with the higher past 5-year average growth rate of 55%. Presently, with latest-twelve-month earnings at CHF8.8m, we should see this growing to CHF10m by 2020. Below is a brief commentary around Adval Tech Holding's earnings outlook going forward, which may give you a sense of market sentiment for the company. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
Exciting times ahead?
The longer term view from the 1 analysts covering ADVN 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. To understand the overall trajectory of ADVN's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
From the current net income level of CHF8.8m and the final forecast of CHF12m by 2022, the annual rate of growth for ADVN’s earnings is 10.0%. This leads to an EPS of CHF16.5 in the final year of projections relative to the current EPS of CHF12.02. In 2022, ADVN's profit margin will have expanded from 4.6% to 5.7%.
Future outlook is only one aspect when you're building an investment case for a stock. For Adval Tech Holding, I've compiled three fundamental factors 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 Adval Tech Holding 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 Adval Tech Holding is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Adval Tech Holding? 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 email@example.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.