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Looking at ORIOR AG's (VTX:ORON) earnings update in December 2018, analyst consensus outlook appear pessimistic, as a 5.7% fall in profits is expected in the upcoming year compared with the past 5-year average growth rate of 4.4%. Presently, with latest-twelve-month earnings at CHF32m, we should see this fall to CHF30m by 2020. Below is a brief commentary around ORIOR's earnings outlook going forward, which may give you a sense of market sentiment for the company. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
See our latest analysis for ORIOR
What can we expect from ORIOR in the longer term?
The longer term expectations from the 6 analysts of ORON is tilted towards the positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.
By 2022, ORON's earnings should reach CHF34m, from current levels of CHF32m, resulting in an annual growth rate of 2.2%. This leads to an EPS of CHF5.17 in the final year of projections relative to the current EPS of CHF4.98. Analysts are predicting this high revenue growth to squeeze profit margins over time, from 5.5% to 5.0% by the end of 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For ORIOR, there are three key aspects 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 ORIOR 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 ORIOR 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 ORIOR? 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.