In June 2019, Alma Media Oyj (HEL:ALMA) announced its earnings update. Overall, it seems that analyst expectations are fairly bearish, with earnings expected to grow by 13% in the upcoming year against the higher past 5-year average growth rate of 32%. Currently with trailing-twelve-month earnings of €42m, we can expect this to reach €47m by 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
What can we expect from Alma Media Oyj in the longer term?
The 3 analysts covering ALMA view its longer term outlook with a positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of ALMA's earnings growth over these next few years.
This results in an annual growth rate of 4.7% based on the most recent earnings level of €42m to the final forecast of €48m by 2022. EPS reaches €0.56 in the final year of forecast compared to the current €0.51 EPS today. In 2022, ALMA's profit margin will have expanded from 12% to 13%.
Future outlook is only one aspect when you're building an investment case for a stock. For Alma Media Oyj, there are three essential factors you should further research:
- 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.
- Valuation: What is Alma Media Oyj 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 Alma Media Oyj is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Alma Media Oyj? 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 firstname.lastname@example.org. 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.