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What Should We Expect From ORPEA Société Anonyme's (EPA:ORP) Earnings Over The Next Year?

Simply Wall St

In December 2018, ORPEA Société Anonyme (EPA:ORP) released its earnings update. Generally, it seems that analyst forecasts are fairly in-line with its track record, as upcoming earnings growth is expected to be 14% next year, similar to the range of average earnings growth for the past five years of 14% per year. Presently, with latest-twelve-month earnings at €220m, we should see this growing to €252m by 2020. Below is a brief commentary on the longer term outlook the market has for ORPEA Société Anonyme. For those interested in more of an analysis of the company, you can research its fundamentals here.

View our latest analysis for ORPEA Société Anonyme

How will ORPEA Société Anonyme perform in the near future?

Over the next three years, it seems the consensus view of the 13 analysts covering ORP is skewed towards the positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To get an idea of the overall earnings growth trend for ORP, 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.

ENXTPA:ORP Past and Future Earnings, September 4th 2019

This results in an annual growth rate of 12% based on the most recent earnings level of €220m to the final forecast of €317m by 2022. This leads to an EPS of €4.87 in the final year of projections relative to the current EPS of €3.41. With a current profit margin of 6.4%, this movement will result in a margin of 7.5% by 2022.

Next Steps:

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