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In March 2019, Knoll, Inc. (NYSE:KNL) released its earnings update. Generally, the consensus outlook from analysts appear fairly confident, with profits predicted to increase by 26% next year relative to the past 5-year average growth rate of 15%. Currently with trailing-twelve-month earnings of US$73m, we can expect this to reach US$93m by 2020. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for Knoll in the longer term. For those interested in more of an analysis of the company, you can research its fundamentals here.
How is Knoll going to perform in the near future?
The longer term view from the 3 analysts covering KNL 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 reduce the year-on-year volatility of analyst earnings forecast, I’ve inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.
From the current net income level of US$73m and the final forecast of US$111m by 2022, the annual rate of growth for KNL’s earnings is 10.0%. EPS reaches $2.34 in the final year of forecast compared to the current $1.51 EPS today. In 2022, KNL’s profit margin will have expanded from 5.6% to 7.6%.
Future outlook is only one aspect when you’re building an investment case for a stock. For Knoll, I’ve compiled three fundamental factors 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 Knoll 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 Knoll is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Knoll? 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 firstname.lastname@example.org. 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.