Market analysts’ consensus outlook for this coming year seems pessimistic, with earnings becoming even more negative, arriving at -US$14.71M in 2019. In addition, earnings should fall off and hover around the same level over the next few years, generating -US$16.15M in 2021.
While it is useful to be aware of the growth each year relative to today’s figure, it may be more beneficial to evaluate the rate at which the company is growing on average every year. The pro of this method is that we can get a better picture of the direction of MediciNova’s earnings trajectory over the long run, irrespective of near term fluctuations, fluctuate up and down. To calculate this rate, I put a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is -3.66%. This means that, we can assume MediciNova will chip away at a rate of -3.66% every year for the next couple of years.
For MediciNova, there are three important aspects you should further research:
- 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.
- Future Earnings: How does MNOV’s growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of MNOV? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!