In December 2018, Nu Skin Enterprises, Inc. (NYSE:NUS) announced its earnings update. Overall, the consensus outlook from analysts appear highly confident, with profits predicted to ramp up by an impressive 81% next year, relative to the historical 5-year average growth rate of -20%. By 2020, we can expect Nu Skin Enterprises’s bottom line to reach US$220m, a jump from the current trailing-twelve-month of US$122m. Below is a brief commentary on the longer term outlook the market has for Nu Skin Enterprises. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
How will Nu Skin Enterprises perform in the near future?
The longer term view from the 6 analysts covering NUS is one of positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. 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$122m and the final forecast of US$243m by 2022, the annual rate of growth for NUS’s earnings is 24%. EPS reaches $4.54 in the final year of forecast compared to the current $2.21 EPS today. With a current profit margin of 4.5%, this movement will result in a margin of 8.3% by 2022.
Future outlook is only one aspect when you’re building an investment case for a stock. For Nu Skin Enterprises, I’ve put together three pertinent aspects 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 Nu Skin Enterprises 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 Nu Skin Enterprises is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Nu Skin Enterprises? 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.