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What Should You Know About ING Groep N.V.’s (AMS:INGA) Growth?

Brent Freeman

Since ING Groep N.V. (AMS:INGA) released its earnings in September 2018, analyst consensus outlook appear cautiously subdued, with profits predicted to rise by 14% next year against the higher past 5-year average growth rate of 16%. By 2020, we can expect ING Groep’s bottom line to reach €5.6b, a jump from the current trailing-twelve-month of €4.9b. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for ING Groep in the longer term. For those keen to understand more about other aspects of the company, you can research its fundamentals here.

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How is ING Groep going to perform in the near future?

The longer term expectations from the 21 analysts of INGA is tilted towards the positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To reduce the year-on-year volatility of analyst earnings forecast, I’ve inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.

ENXTAM:INGA Future Profit January 15th 19

By 2022, INGA’s earnings should reach €6.5b, from current levels of €4.9b, resulting in an annual growth rate of 9.7%. EPS reaches €1.52 in the final year of forecast compared to the current €1.26 EPS today. Margins are currently sitting at 29%, which is expected to expand to 34% by 2022.

Next Steps:

Future outlook is only one aspect when you’re building an investment case for a stock. For ING Groep, I’ve put together three relevant factors you should further research:

  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 ING Groep 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 ING Groep is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of ING Groep? 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 past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.