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Clasquin SA (EPA:ALCLA): What Does The Future Look Like?

Simply Wall St

After Clasquin SA's (EPA:ALCLA) earnings announcement on 31 December 2018, the consensus outlook from analysts appear fairly confident, as a 39% increase in profits is expected in the upcoming year, relative to the past 5-year average growth rate of 6.4%. With trailing-twelve-month net income at current levels of €2.8m, we should see this rise to €3.9m in 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Clasquin in the longer term. For those interested in more of an analysis of the company, you can research its fundamentals here.

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See our latest analysis for Clasquin

What can we expect from Clasquin in the longer term?

The longer term view from the 3 analysts covering ALCLA is one of 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 ALCLA's earnings growth over these next few years.

ENXTPA:ALCLA Past and Future Earnings, May 24th 2019

This results in an annual growth rate of 22% based on the most recent earnings level of €2.8m to the final forecast of €5.6m by 2022. This leads to an EPS of €2.44 in the final year of projections relative to the current EPS of €1.22. Margins are currently sitting at 0.9%, which is expected to expand to 1.7% by 2022.

Next Steps:

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