How Do Analysts See Corbion N.V. (AMS:CRBN) Performing In The Next 12 Months?
Looking at Corbion N.V.’s (AMS:CRBN) earnings update on 31 December 2018, the consensus outlook from analysts appear somewhat bearish, with earnings expected to grow by 11% in the upcoming year relative to the higher past 5-year average growth rate of 36%. Currently with trailing-twelve-month earnings of €54m, we can expect this to reach €60m by 2020. Below is a brief commentary around Corbion’s earnings outlook going forward, which may give you a sense of market sentiment for the company. For those interested in more of an analysis of the company, you can research its fundamentals here.
See our latest analysis for Corbion
How will Corbion perform in the near future?
Over the next three years, it seems the consensus view of the 6 analysts covering CRBN is skewed towards the positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To get an idea of the overall earnings growth trend for CRBN, 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 €54m and the final forecast of €96m by 2022, the annual rate of growth for CRBN’s earnings is 20%. This leads to an EPS of €1.61 in the final year of projections relative to the current EPS of €0.93. In 2022, CRBN’s profit margin will have expanded from 6.1% to 8.5%.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Corbion, I’ve put together three key 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 Corbion 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 Corbion is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Corbion? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
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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.
