Monash IVF Group Limited (ASX:MVF): Poised For Long Term Success?
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In December 2018, Monash IVF Group Limited (ASX:MVF) announced its earnings update. Overall, analysts seem cautiously bearish, with earnings expected to grow by 11% in the upcoming year against the higher past 5-year average growth rate of 23%. With trailing-twelve-month net income at current levels of AU$21m, we should see this rise to AU$24m in 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Monash IVF Group in the longer term. For those interested in more of an analysis of the company, you can research its fundamentals here.
Check out our latest analysis for Monash IVF Group
Can we expect Monash IVF Group to keep growing?
The view from 3 analysts over the next three years 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 understand the overall trajectory of MVF's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
From the current net income level of AU$21m and the final forecast of AU$25m by 2022, the annual rate of growth for MVF’s earnings is 4.5%. EPS reaches A$0.093 in the final year of forecast compared to the current A$0.091 EPS today. As revenues is expected to outpace earnings, analysts expect margins to contract from the current 14% to 14% by the end of 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Monash IVF Group, I've put together three important 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 Monash IVF 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 Monash IVF Group is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Monash IVF 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!
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.
