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Bankinter, S.A. (BME:BKT): Poised For Long Term Success?

Simply Wall St

On 31 March 2019, Bankinter, S.A. (BME:BKT) released its earnings update. Generally, analysts seem cautiously bearish, with profits predicted to rise by 9.4% next year relative to the higher past 5-year average growth rate of 15%. By 2020, we can expect Bankinter’s bottom line to reach €562m, a jump from the current trailing-twelve-month of €514m. Below is a brief commentary around Bankinter'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.

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See our latest analysis for Bankinter

Exciting times ahead?

Over the next three years, it seems the consensus view of the 13 analysts covering BKT is skewed towards the positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To get an idea of the overall earnings growth trend for BKT, 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.

BME:BKT Past and Future Earnings, May 17th 2019

By 2022, BKT's earnings should reach €630m, from current levels of €514m, resulting in an annual growth rate of 5.2%. EPS reaches €0.65 in the final year of forecast compared to the current €0.57 EPS today. Margins are currently sitting at 28%, approximately the same as previous years. With analysts forecasting revenue growth of 0.20584 and BKT's net income growth expected to roughly track that, this company may add value for shareholders over time.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For Bankinter, I've put together three important aspects you should further research:

  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 Bankinter 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 Bankinter is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Bankinter? 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.