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How Do Analysts See Euronext N.V. (EPA:ENX) Performing In The Year Ahead?

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In December 2018, Euronext N.V. (EPA:ENX) announced its earnings update. Overall, analyst consensus outlook appear cautiously subdued, with profits predicted to rise by 11% next year relative to the higher past 5-year average growth rate of 22%. Currently with trailing-twelve-month earnings of €216m, we can expect this to reach €240m by 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Euronext in the longer term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.

View our latest analysis for Euronext

What can we expect from Euronext in the longer term?

The view from 12 analysts over the next three years is one of positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. 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 ENX's earnings growth over these next few years.

ENXTPA:ENX Past and Future Earnings, April 8th 2019
ENXTPA:ENX Past and Future Earnings, April 8th 2019

This results in an annual growth rate of 8.0% based on the most recent earnings level of €216m to the final forecast of €275m by 2022. This leads to an EPS of €4.02 in the final year of projections relative to the current EPS of €3.1. In 2022, ENX's profit margin will have expanded from 35% to 40%.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For Euronext, I've put together three fundamental 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 Euronext 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 Euronext is currently mispriced by the market.

  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Euronext? 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.