How Do Analysts See Hermès International Société en commandite par actions (EPA:RMS) Performing In The Year Ahead?
Based on Hermès International Société en commandite par actions’s (EPA:RMS) earnings update in June 2018, the consensus outlook from analysts appear somewhat bearish, with earnings expected to grow by 6.6% in the upcoming year compared with the higher past 5-year average growth rate of 11%. Presently, with latest-twelve-month earnings at €1.2b, we should see this growing to €1.3b by 2020. Below is a brief commentary around Hermès International Société en commandite par actions’s earnings outlook going forward, which may give you a sense of market sentiment for the company. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
Check out our latest analysis for Hermès International Société en commandite par actions
Exciting times ahead?
The longer term view from the 17 analysts covering RMS is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To understand the overall trajectory of RMS’s earnings growth over these next fews years, I’ve fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
This results in an annual growth rate of 7.5% based on the most recent earnings level of €1.2b to the final forecast of €1.5b by 2022. This leads to an EPS of €15.48 in the final year of projections relative to the current EPS of €11.7. Analysts are predicting this high revenue growth to squeeze profit margins over time, from 22% to 21% by the end of 2022.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Hermès International Société en commandite par actions, I’ve compiled three relevant factors 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 Hermès International Société en commandite par actions 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 Hermès International Société en commandite par actions is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Hermès International Société en commandite par actions? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
