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What Do Analysts Think About ENAV S.p.A.'s (BIT:ENAV) Future?

Simply Wall St

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On 31 March 2019, ENAV S.p.A. (BIT:ENAV) announced its latest earnings update. Overall, it seems that analyst forecasts are fairly pessimistic, with profits predicted to drop by 2.4% next year against the past 5-year average growth rate of 22%. Presently, with latest-twelve-month earnings at €114m, we should see this fall to €112m by 2020. Below is a brief commentary around ENAV'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 ENAV

Exciting times ahead?

The 5 analysts covering ENAV view its longer term outlook with a positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To get an idea of the overall earnings growth trend for ENAV, 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.

BIT:ENAV Past and Future Earnings, June 10th 2019

This results in an annual growth rate of 6.7% based on the most recent earnings level of €114m to the final forecast of €133m by 2022. EPS reaches €0.24 in the final year of forecast compared to the current €0.21 EPS today. Margins are currently sitting at 13%, which is expected to expand to 14% by 2022.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For ENAV, I've put together three relevant aspects 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 ENAV 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 ENAV is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of ENAV? 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.