What Should Investors Know About the future of NCR Corporation’s (NCR) Business?
Analysts covering NCR Corporation (NYSE:NCR) are predicting high double-digit earnings per share growth of 88.49% over the following three years. Presently, with an EPS of $1.771, we can expect an upcoming EPS of $3.338. Today I will look at the latest data in order to investigate whether this expected growth rate is plausible. See our latest analysis for NCR
What can we expect from NCR Corporation (NYSE:NCR) in the future?
Investors in NCR have been patiently waiting for the uptick in earnings and if you believe the analysts covering the stock then the following year will be very interesting. Expectation of stock’s 5 analysts is high, with earnings expected to rise from today’s level of $1.771 to $3.338 over the next couple of years. This illustrates a relatively optimistic outlook in the near term, with a relatively solid earnings per share growth rate of 88.49% over the next few years. In the same period and net income is predicted to rise from $218M to $411M in the next couple of years, roughly staying around the same level. However, margins look rather unappealing at the current levels of revenue and earnings.
Basis for the growth
The past can be a great indicator for future performance for a stock. We can determine whether this level of expected growth is sustainable and whether the company continues to go from strength to strength. However, NCR’s earnings growth in the past couple of years has been negative at -5.02%. Although its past performance illustrates a different picture to earnings growth moving forward, it could also mean NCR is growing off a lower base, meaning a higher growth rate is easier to achieve. This sign change in growth could indicate a turnaround initiative.
Next Steps:
For NCR, there are three fundamental aspects you should further examine:
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 NCR 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 NCR is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of NCR? 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 pass 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.
