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What Should You Know About Mota-Engil, SGPS, S.A.'s (ELI:EGL) Growth?

Simply Wall St

As Mota-Engil, SGPS, S.A. (ELI:EGL) announced its earnings release on 30 June 2019, the consensus outlook from analysts appear fairly confident, with profits predicted to increase by 7.3% next year compared with the past 5-year average growth rate of -31%. Presently, with latest-twelve-month earnings at €24m, we should see this growing to €25m by 2020. Below is a brief commentary around Mota-Engil SGPS'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.

Check out our latest analysis for Mota-Engil SGPS

Exciting times ahead?

Longer term expectations from the 3 analysts covering EGL’s stock 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 EGL'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.

ENXTLS:EGL Past and Future Earnings, August 31st 2019

By 2022, EGL's earnings should reach €48m, from current levels of €24m, resulting in an annual growth rate of 31%. This leads to an EPS of €0.23 in the final year of projections relative to the current EPS of €0.10. With a current profit margin of 0.8%, this movement will result in a margin of 1.6% by 2022.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For Mota-Engil SGPS, I've compiled three fundamental 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 Mota-Engil SGPS 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 Mota-Engil SGPS is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Mota-Engil SGPS? 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.