Yahoo Finance What Should We Expect From Naturex SA’s (EPA:NRX) Earnings In The Years Ahead?
Naturex SA’s (EPA:NRX) most recent earnings announcement in December 2017 signalled that the company endured a significant headwind with earnings deteriorating by -33.99%. Below, I’ve presented key growth figures on how market analysts perceive Naturex’s earnings growth outlook over the next few years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in. Check out our latest analysis for Naturex
Analysts’ expectations for the upcoming year seems positive, with earnings growth more than doubling. Earnings continue to grow strongly in the next couple of years, finally reaching €43.25m in 2021.
While it is informative understanding the growth rate year by year relative to today’s level, it may be more insightful evaluating the rate at which the earnings are growing every year, on average. The benefit of this technique is that we can get a bigger picture of the direction of Naturex’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 analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 35.20%. This means, we can expect Naturex will grow its earnings by 35.20% every year for the next couple of years.
Next Steps:
For Naturex, I’ve compiled three key aspects you should further research:
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 NRX 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 NRX is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of NRX? 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 pass 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.
