Brunel International N.V. (AMS:BRNL): Poised For Long-Term Success?
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Brunel International N.V.'s (AMS:BRNL) most recent earnings update in February 2019 suggested that the business experienced a significant tailwind, more than doubling its earnings from the prior year. Below is a brief commentary on my key takeaways on how market analysts view Brunel International's earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings.
Check out our latest analysis for Brunel International
Analysts' expectations for next year seems buoyant, with earnings increasing by a significant 56%. This strong growth in earnings is expected to continue, bringing the bottom line up to €56m by 2022.
While it’s helpful to be aware of the growth rate each year relative to today’s figure, it may be more beneficial to determine the rate at which the business is rising or falling on average every year. The benefit of this technique is that we can get a better picture of the direction of Brunel International's earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate this rate, I've appended a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 31%. This means that, we can expect Brunel International will grow its earnings by 31% every year for the next couple of years.
Next Steps:
For Brunel International, there are three essential aspects you should further research:
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.
Future Earnings: How does BRNL's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of BRNL? 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.
