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What Should You Know About The Future Of Koninklijke Vopak N.V.'s (AMS:VPK)?

Simply Wall St

In March 2019, Koninklijke Vopak N.V. (AMS:VPK) released its earnings update. Generally, analysts seem extremely confident, with earnings expected to grow by a high double-digit of 72% in the upcoming year, compared with the past 5-year average growth rate of -2.4%. Presently, with latest-twelve-month earnings at €255m, we should see this growing to €438m by 2020. Below is a brief commentary around Koninklijke Vopak'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 Koninklijke Vopak

How will Koninklijke Vopak perform in the near future?

The longer term view from the 9 analysts covering VPK is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To understand the overall trajectory of VPK's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.

ENXTAM:VPK Past and Future Earnings, August 1st 2019

By 2022, VPK's earnings should reach €376m, from current levels of €255m, resulting in an annual growth rate of 1.3%. This leads to an EPS of €2.97 in the final year of projections relative to the current EPS of €1.99. Analysts are predicting earnings growth to outpace revenue by the end of 2022, resulting in a margin expansion from 20% to 28%.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For Koninklijke Vopak, I've compiled three pertinent aspects you should further examine:

  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 Koninklijke Vopak 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 Koninklijke Vopak is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Koninklijke Vopak? 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.