Compagnie Plastic Omnium SA’s (ENXTPA:POM) announced its latest earnings update in December 2017, which confirmed that the business benefited from a robust tailwind, leading to a double-digit earnings growth of 36.23%. Below, I’ve laid out key numbers on how market analysts predict Compagnie Plastic Omnium’s earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings. See our latest analysis for Compagnie Plastic Omnium
Analysts’ outlook for next year seems rather muted, with earnings rising by a single digit 4.01%. The growth outlook in the following year seems much more positive with rates arriving at double digit 17.32% compared to today’s earnings, and finally hitting €544.68M by 2021.
Even though it’s informative knowing the rate of growth year by year relative to today’s level, it may be more insightful to analyze the rate at which the company is moving every year, on average. The advantage of this approach is that we can get a bigger picture of the direction of Compagnie Plastic Omnium’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To compute this rate, I put a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 8.73%. This means, we can expect Compagnie Plastic Omnium will grow its earnings by 8.73% every year for the next few years.
Next Steps:
For Compagnie Plastic Omnium, I’ve put together three essential 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 POM 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 POM 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 POM? 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.