In March 2018, Polskie Górnictwo Naftowe i Gazownictwo SA (WSE:PGN) released its earnings update. Generally, analysts seem fairly confident, as a 31.7% increase in profits is expected in the upcoming year, relative to the past 5-year average growth rate of 6.3%. By 2019, we can expect Polskie Górnictwo Naftowe i Gazownictwo’s bottom line to reach zł3.81b, a jump from the current trailing-twelve-month zł2.89b. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for Polskie Górnictwo Naftowe i Gazownictwo in the longer term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
Exciting times ahead?
The longer term expectations from the 6 analysts of PGN is tilted towards the positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. 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 PGN’s earnings growth over these next few years.
By 2021, PGN’s earnings should reach zł3.70b, from current levels of zł2.92b, resulting in an annual growth rate of 1.7%. EPS reaches PLN0.66 in the final year of forecast compared to the current PLN0.51 EPS today. The bottom-line growth seems to be caused by reduction in costs rather than purely top-line expansion as earnings is increasing at a faster rate. In 2021, PGN’s profit margin will have expanded from 8.2% to 8.9%.
Future outlook is only one aspect when you’re building an investment case for a stock. For Polskie Górnictwo Naftowe i Gazownictwo, I’ve put together three pertinent aspects you should look at:
- 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 Polskie Górnictwo Naftowe i Gazownictwo 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 Polskie Górnictwo Naftowe i Gazownictwo is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Polskie Górnictwo Naftowe i Gazownictwo? 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 firstname.lastname@example.org.