What Do Analysts Think About The Future Of bpost SA/NV's (EBR:BPOST)?

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Looking at bpost SA/NV's (EBR:BPOST) recent earnings update on 30 June 2019, analyst consensus outlook appear bearish, with earnings expected to decline by 16% in the upcoming year. Though this outlook is not unfounded, given the negative earnings growth rate over the past five years on average. Presently, with latest-twelve-month earnings at €265m, we should see this fall to €222m by 2020. Below is a brief commentary around bpost's earnings outlook going forward, which may give you a sense of market sentiment for the company. For those keen to understand more about other aspects of the company, you can research its fundamentals here.

View our latest analysis for bpost

How is bpost going to perform in the near future?

The longer term view from the 8 analysts covering BPOST is one of positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To understand the overall trajectory of BPOST'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.

ENXTBR:BPOST Past and Future Earnings, August 10th 2019
ENXTBR:BPOST Past and Future Earnings, August 10th 2019

By 2022, BPOST's earnings should reach €262m, from current levels of €265m, resulting in an annual growth rate of 2.7%. However, if we exclude extraordinary items from net income, we see that earnings is projected to fall over time, resulting in an EPS of €1.0 in the final year of forecast compared to the current €1.32 EPS today. However, the near term margins may change heading into 2022, from the current levels of 7.0% to 6.7%.

Next Steps:

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

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

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