In This Article:
BAWAG PS.K.’s (WBAG:BG) latest earnings announcement in December 2017 showed that the business endured a slight headwind with earnings declining from €473.40M to €466.60M, a change of -1.44%. Below, I’ve laid out key numbers on how market analysts perceive BAWAG P.S.K’s earnings growth trajectory over the next couple of years and whether the future looks brighter. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings. View our latest analysis for BAWAG P.S.K
Market analysts’ prospects for this coming year seems pessimistic, with earnings decreasing by -4.63%. Over the medium term, earnings are predicted to continue to be below today’s level, with a fall of -3.14% in 2020, eventually reaching €451.94M in 2021.
While it’s helpful to be aware of the growth rate each year relative to today’s value, it may be more insightful to gauge the rate at which the business is growing every year, on average. The benefit of this technique is that it removes the impact of near term flucuations and accounts for the overarching direction of BAWAG P.S.K’s earnings trajectory over time, which may be more relevant for long term investors. To compute this rate, I’ve inserted a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is -1.49%. This means that, we can assume BAWAG P.S.K will chip away at a rate of -1.49% every year for the next couple of years.
Next Steps:
For BAWAG P.S.K, there are three fundamental factors you should look at:
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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 BG 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 BG 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 BG? 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.