Handicare Group AB (publ) (STO:HANDI): Poised For Long-Term Success?
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The most recent earnings update Handicare Group AB (publ)’s (STO:HANDI) released in December 2018 signalled that the company finally turned profitable after negative earnings on average over the last couple of years. Below, I’ve laid out key numbers on how market analysts view Handicare Group’s earnings growth outlook over the next few years and whether the future looks brighter. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.
View our latest analysis for Handicare Group
Market analysts’ consensus outlook for the coming year seems buoyant, with earnings rising by a significant 74%. However, HANDI’s profits are predicted to be volatile, falling in absolute dollar terms in the following year before rising up again in 2022.
Even though it’s informative understanding the rate of growth year by year relative to today’s level, it may be more insightful gauging the rate at which the business is rising or falling every year, on average. The benefit of this method is that we can get a bigger picture of the direction of Handicare Group’s earnings trajectory over the long run, irrespective of near term fluctuations, fluctuate up and down. To compute this rate, I’ve appended a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 19%. This means that, we can assume Handicare Group will grow its earnings by 19% every year for the next few years.
Next Steps:
For Handicare Group, I’ve compiled three essential 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 HANDI 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 HANDI is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of HANDI? 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.
