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In April 2019, FNG NV (EBR:FNG) announced its most recent earnings update, which showed that the business gained from a sizeable tailwind, leading to a high double-digit earnings growth of 58%. Below, I've laid out key numbers on how market analysts perceive FNG's earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.
See our latest analysis for FNG
Analysts' expectations for the upcoming year seems positive, with earnings growing by a significant 65%. This strong growth in earnings is expected to continue, bringing the bottom line up to €32m by 2022.
Even though it is informative knowing the growth year by year relative to today’s figure, it may be more insightful estimating the rate at which the business is growing on average every year. The pro of this technique is that it ignores near term flucuations and accounts for the overarching direction of FNG'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 28%. This means, we can anticipate FNG will grow its earnings by 28% every year for the next few years.
Next Steps:
For FNG, I've compiled three relevant 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 FNG 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 FNG 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 FNG? 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.