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Based on Aspo Oyj's (HEL:ASPO) earnings update in March 2019, analysts seem extremely confident, as a 60% rise in profits is expected in the upcoming year, compared with the historical 5-year average growth rate of -1.8%. With trailing-twelve-month net income at current levels of €13m, we should see this rise to €21m in 2020. Below is a brief commentary around Aspo Oyj's earnings outlook going forward, which may give you a sense of market sentiment for the company. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
See our latest analysis for Aspo Oyj
Can we expect Aspo Oyj to keep growing?
The 3 analysts covering ASPO view its longer term outlook with a positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To get an idea of the overall earnings growth trend for ASPO, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
This results in an annual growth rate of 21% based on the most recent earnings level of €13m to the final forecast of €29m by 2022. EPS reaches €1.02 in the final year of forecast compared to the current €0.42 EPS today. In 2022, ASPO's profit margin will have expanded from 2.4% to 4.6%.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Aspo Oyj, I've compiled three key factors you should further examine:
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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.
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Valuation: What is Aspo Oyj 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 Aspo Oyj is currently mispriced by the market.
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Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Aspo Oyj? 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.