In December 2017, PostNL NV. (ENXTAM:PNL) announced its most recent earnings update, which signalled that the company faced a major headwind with earnings declining by -46.95%. Below, I’ve presented key growth figures on how market analysts perceive PostNL’s earnings growth trajectory over the next few years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in. View our latest analysis for PostNL
Market analysts’ consensus outlook for the coming year seems positive, with earnings rising by a robust 17.72%. This growth seems to continue into the following year with rates reaching double digit 33.30% compared to today’s earnings, and finally hitting €202.76M by 2021.
Although it is useful to understand the growth rate each year relative to today’s value, it may be more beneficial to gauge the rate at which the business is moving every year, on average. The pro of this technique is that we can get a better picture of the direction of PostNL’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 put 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 11.22%. This means, we can presume PostNL will grow its earnings by 11.22% every year for the next few years.
For PostNL, I’ve compiled three relevant factors you should look at:
- 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.
- Valuation: What is PNL 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 PNL is currently mispriced by the market.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of PNL? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.