EVRY ASA (OB:EVRY): What We Can Expect From This Growth Stock

On 31 March 2019, EVRY ASA (OB:EVRY) released its earnings update. Generally, it seems that analyst forecasts are fairly optimistic, with earnings expected to grow by 38% in the upcoming year, though this is relatively lower than the historical 5-year average earnings growth of 42%. By 2020, we can expect EVRY’s bottom line to reach øre880m, a jump from the current trailing-twelve-month of øre640m. Below is a brief commentary on the longer term outlook the market has for EVRY. For those keen to understand more about other aspects of the company, you can research its fundamentals here.

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See our latest analysis for EVRY

Can we expect EVRY to keep growing?

The longer term expectations from the 7 analysts of EVRY is tilted towards the positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To get an idea of the overall earnings growth trend for EVRY, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.

OB:EVRY Past and Future Earnings, May 18th 2019
OB:EVRY Past and Future Earnings, May 18th 2019

From the current net income level of øre640m and the final forecast of øre1.2b by 2022, the annual rate of growth for EVRY’s earnings is 13%. This leads to an EPS of NOK3.17 in the final year of projections relative to the current EPS of NOK1.73. With a current profit margin of 5.0%, this movement will result in a margin of 8.2% by 2022.

Next Steps:

Future outlook is only one aspect when you’re building an investment case for a stock. For EVRY, there are three fundamental factors you should further examine:

  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 EVRY 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 EVRY is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of EVRY? 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.