What Are Analysts Expecting From Compagnie Plastic Omnium SA (EPA:POM) In The Next Couple Of Years?
The latest earnings update Compagnie Plastic Omnium SA (EPA:POM) released in December 2018 showed that the business experienced a robust tailwind, leading to a double-digit earnings growth of 25%. Below is a brief commentary on my key takeaways on how market analysts predict Compagnie Plastic Omnium’s earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.
See our latest analysis for Compagnie Plastic Omnium
Analysts’ expectations for next year seems pessimistic, with earnings decreasing by a double-digit -24%. Over the medium term, earnings are expected to continue to be below today’s level, with a decline of -16% in 2021, eventually reaching €444m in 2022.
While it is informative understanding the growth rate each year relative to today’s value, it may be more beneficial evaluating the rate at which the company is growing on average every year. The advantage of this approach is that we can get a better picture of the direction of Compagnie Plastic Omnium’s earnings trajectory over the long run, irrespective of near term fluctuations, fluctuate up and down. To compute this rate, I’ve appended a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is -7.1%. This means, we can expect Compagnie Plastic Omnium will chip away at a rate of -7.1% every year for the next couple of years.
Next Steps:
For Compagnie Plastic Omnium, I’ve compiled three pertinent aspects you should further examine:
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 POM 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 POM is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of POM? 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.
