Will New Zealand King Salmon Investments Limited's (NZSE:NZK) Earnings Grow Over The Next Year?
Looking at New Zealand King Salmon Investments Limited's (NZSE:NZK) earnings update on 30 June 2019, analysts seem cautiously bearish, with earnings expected to grow by 18% in the upcoming year compared with the higher past 5-year average growth rate of 27%. Currently with trailing-twelve-month earnings of NZ$11m, we can expect this to reach NZ$13m by 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for New Zealand King Salmon Investments in the longer term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
See our latest analysis for New Zealand King Salmon Investments
What can we expect from New Zealand King Salmon Investments in the longer term?
Longer term expectations from the 4 analysts covering NZK’s stock 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 NZK'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 NZ$11m and the final forecast of NZ$21m by 2022, the annual rate of growth for NZK’s earnings is 20%. This leads to an EPS of NZ$0.14 in the final year of projections relative to the current EPS of NZ$0.080. In 2022, NZK's profit margin will have expanded from 6.6% to 9.4%.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For New Zealand King Salmon Investments, I've put together three fundamental aspects 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 New Zealand King Salmon Investments 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 New Zealand King Salmon Investments is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of New Zealand King Salmon Investments? 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 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.
