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What Are Analysts Saying About The Future Of Vicat SA’s (EPA:VCT)?

Simply Wall St

As Vicat SA (EPA:VCT) announced its earnings release on 31 December 2018, the consensus outlook from analysts appear fairly confident, as a 11% increase in profits is expected in the upcoming year, compared with the past 5-year average growth rate of 6.2%. Presently, with latest-twelve-month earnings at €151m, we should see this growing to €167m by 2020. Below is a brief commentary on the longer term outlook the market has for Vicat. For those keen to understand more about other aspects of the company, you can research its fundamentals here.

Check out our latest analysis for Vicat

Exciting times ahead?

The longer term expectations from the 9 analysts of VCT is tilted towards the positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To reduce the year-on-year volatility of analyst earnings forecast, I’ve inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.

ENXTPA:VCT Past and Future Earnings, March 15th 2019

This results in an annual growth rate of 11% based on the most recent earnings level of €151m to the final forecast of €203m by 2022. EPS reaches €4.55 in the final year of forecast compared to the current €3.37 EPS today. In 2022, VCT’s profit margin will have expanded from 5.9% to 6.4%.

Next Steps:

Future outlook is only one aspect when you’re building an investment case for a stock. For Vicat, there are three relevant factors you should look at:

  1. 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.
  2. Valuation: What is Vicat 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 Vicat is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Vicat? 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.