Based on the latest analyst predictions, Electronics for Imaging Inc (NASDAQ:EFII) is estimated to sizably grow its earnings by 21.32% in the upcoming three years. Presently, with an EPS of $0.982, we can expect an upcoming EPS of $1.191. To determine whether this growth rate expectation is justified, we should take a look at how the company has been performing in the past. View our latest analysis for Electronics for Imaging
Can we expect EFII to keep growing?EFII is covered by 7 analysts who by consensus are expecting earnings to increase from today’s level of $0.982 to $1.191 over the next couple of years. This illustrates a relatively optimistic outlook in the near term, with a relatively solid earnings per share growth rate of 21.32% over the next few years. During the same time and net income is predicted to escalate from $46M to $56M in the next couple of years, roughly staying around the same level. However, margins look rather unappealing at the current levels of revenue and earnings.
Basis for the growthThe past can be an insightful indicator for future performance for a stock. We can determine whether this level of expected growth is sustainable and whether the company continues to go from strength to strength. EFII’s earnings growth in the last five years was a low 1.83%, indicating a relatively more optimistic future painted for the company in the future. This belief may be supported by turnaround initiatives implemented in the past, or previous investments coming to fruition.
For EFII, I’ve compiled three relevant factors you should further research:
1. 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.
2. Valuation: What is EFII 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 EFII is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of EFII? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!