The Hain Celestial Group Inc (NASDAQ:HAIN): Immense Growth Potential?

After The Hain Celestial Group Inc’s (NASDAQ:HAIN) earnings announcement in March 2018, analysts seem fairly confident, as a 44.48% increase in profits is expected in the upcoming year, relative to the past 5-year average growth rate of -4.60%. Presently, with latest-twelve-month earnings at US$87.37m, we should see this growing to US$126.23m by 2019. Below is a brief commentary around Hain Celestial Group’s earnings outlook going forward, which may give you a sense of market sentiment for the company. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.

See our latest analysis for Hain Celestial Group

How is Hain Celestial Group going to perform in the near future?

The 17 analysts covering HAIN view its longer term outlook with a positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To get an idea of the overall earnings growth trend for HAIN, 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.
NasdaqGS:HAIN Future Profit August 21st 18
NasdaqGS:HAIN Future Profit August 21st 18
From the current net income level of US$67.43m and the final forecast of US$130.81m by 2021, the annual rate of growth for HAIN’s earnings is 19.52%. EPS reaches $1.67 in the final year of forecast compared to the current $0.65 EPS today. Growth in the bottom line seems to suggest reduction in costs rather than purely top-line expansion as earnings is increasing at a faster rate. Margins is currently sitting at 2.36%, which is expected to expand to 5.05% by 2021.

Next Steps:

Future outlook is only one aspect when you’re building an investment case for a stock. For Hain Celestial Group, I’ve compiled three pertinent aspects 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 Hain Celestial Group 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 Hain Celestial Group is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Hain Celestial Group? 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 past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.