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After PlanetMedia SA's (EPA:ALPLA) recent earnings announcement in December 2018, analyst forecasts seem bearish, as a 0.1% fall in profits is expected in the upcoming year compared with the past 5-year average growth rate of 6.0%. Currently with a trailing-twelve-month profit of €801k, the consensus growth rate suggests that earnings will drop to €800k by 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for PlanetMedia in the longer term. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
See our latest analysis for PlanetMedia
How will PlanetMedia perform in the near future?
The longer term expectations from the 1 analysts of ALPLA 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 get an idea of the overall earnings growth trend for ALPLA, 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 8.0% based on the most recent earnings level of €801k to the final forecast of €1m by 2022. EPS reaches €0.21 in the final year of forecast compared to the current €0.17 EPS today. As revenues is expected to outpace earnings, analysts expect margins to contract from the current 12% to 10% by the end of 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For PlanetMedia, 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 PlanetMedia 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 PlanetMedia 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 PlanetMedia? 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.