Gaztransport & Technigaz Société Anonyme (EPA:GTT): What Does The Future Look Like?
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Looking at Gaztransport & Technigaz Société Anonyme's (EPA:GTT) earnings update in December 2018, it seems that analyst forecasts are fairly pessimistic, with earnings expected to decline by 4.0% in the upcoming year relative to the past 5-year average growth rate of 2.2%. Presently, with latest-twelve-month earnings at €143m, we should see this fall to €137m by 2020. Below is a brief commentary around Gaztransport & Technigaz Société Anonyme's earnings outlook going forward, which may give you a sense of market sentiment for the company. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
See our latest analysis for Gaztransport & Technigaz Société Anonyme
How will Gaztransport & Technigaz Société Anonyme perform in the near future?
The 8 analysts covering GTT view its longer term outlook with a positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around 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 GTT's earnings growth over these next few years.
From the current net income level of €143m and the final forecast of €173m by 2022, the annual rate of growth for GTT’s earnings is 5.9%. This leads to an EPS of €4.67 in the final year of projections relative to the current EPS of €3.85. This high rate of growth of revenue squeezes margins, as analysts predict an upcoming margin contraction from the current 58% to 53% by the end of 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Gaztransport & Technigaz Société Anonyme, I've compiled three fundamental aspects 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 Gaztransport & Technigaz 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 Gaztransport & Technigaz Société Anonyme is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Gaztransport & Technigaz 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.
