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In March 2019, Harvia Oyj (HEL:HARVIA) announced its earnings update. Overall, analyst consensus outlook appear cautiously optimistic, with earnings growth rate expected to be 23% in the upcoming year, relative to the past five-year average earnings growth of 22% per year. With trailing-twelve-month net income at current levels of €6.8m, we should see this rise to €8.3m in 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
Exciting times ahead?
Longer term expectations from the 2 analysts covering HARVIA’s stock is one of positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To understand the overall trajectory of HARVIA’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 €6.8m and the final forecast of €9.7m by 2022, the annual rate of growth for HARVIA’s earnings is 8.9%. EPS reaches €0.59 in the final year of forecast compared to the current €0.41 EPS today. In 2022, HARVIA’s profit margin will have expanded from 11% to 13%.
Future outlook is only one aspect when you’re building an investment case for a stock. For Harvia Oyj, I’ve compiled three key 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 Harvia Oyj 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 Harvia Oyj is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Harvia Oyj? 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.