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As BE Semiconductor Industries N.V. (AMS:BESI) announced its earnings release on 31 March 2019, analyst consensus outlook appear cautiously subdued, with profits predicted to rise by -3.3% next year against the higher past 5-year average growth rate of 29%. With trailing-twelve-month net income at current levels of €136m, we should see this rise to €132m in 2020. Below is a brief commentary on the longer term outlook the market has for BE Semiconductor Industries. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
Can we expect BE Semiconductor Industries to keep growing?
The view from 5 analysts over the next three years is one of positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. 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 BESI's earnings growth over these next few years.
From the current net income level of €136m and the final forecast of €193m by 2022, the annual rate of growth for BESI’s earnings is 17%. EPS reaches €2.03 in the final year of forecast compared to the current €1.83 EPS today. With a current profit margin of 26%, this movement will result in a margin of 29% by 2022.
Future outlook is only one aspect when you're building an investment case for a stock. For BE Semiconductor Industries, I've compiled three fundamental 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 BE Semiconductor Industries 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 BE Semiconductor Industries is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of BE Semiconductor Industries? 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 email@example.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.