What Should Investors Know About Neopost S.A.'s (EPA:NEO) Growth?
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Looking at Neopost S.A.'s (EPA:NEO) earnings update in January 2019, analysts seem fairly confident, as a 11% increase in profits is expected in the upcoming year, against the past 5-year average growth rate of -7.8%. Currently with trailing-twelve-month earnings of €83m, we can expect this to reach €91m by 2020. Below is a brief commentary on the longer term outlook the market has for Neopost. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
Check out our latest analysis for Neopost
How is Neopost going to perform in the near future?
Over the next three years, it seems the consensus view of the 6 analysts covering NEO is skewed towards the positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To get an idea of the overall earnings growth trend for NEO, 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.
This results in an annual growth rate of 7.6% based on the most recent earnings level of €83m to the final forecast of €104m by 2022. EPS reaches €3.33 in the final year of forecast compared to the current €2.4 EPS today. In 2022, NEO's profit margin will have expanded from 7.6% to 9.1%.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Neopost, there are three key aspects you should further examine:
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 Neopost 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 Neopost is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Neopost? 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.
