In This Article:
Based on Viscofan, S.A.'s (BME:VIS) earnings update in December 2018, analyst consensus outlook appear cautiously subdued, with profits predicted to rise by -6.0% next year against the higher past 5-year average growth rate of 5.5%. Currently with trailing-twelve-month earnings of €124m, we can expect this to reach €116m by 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
View our latest analysis for Viscofan
How is Viscofan going to perform in the near future?
Longer term expectations from the 9 analysts covering VIS’s stock is one of positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To get an idea of the overall earnings growth trend for VIS, 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.
From the current net income level of €124m and the final forecast of €134m by 2022, the annual rate of growth for VIS’s earnings is 3.2%. This leads to an EPS of €2.87 in the final year of projections relative to the current EPS of €2.66. Analysts are predicting this high revenue growth to squeeze profit margins over time, from 16% to 15% by the end of 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Viscofan, there are three important factors you should further research:
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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 Viscofan 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 Viscofan 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 Viscofan? 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.