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What Should You Know About Wärtsilä Oyj Abp's (HEL:WRT1V) Future?

Simply Wall St

As Wärtsilä Oyj Abp (HEL:WRT1V) released its earnings announcement on 31 March 2019, analyst consensus outlook appear cautiously optimistic, with profits predicted to increase by 26% next year compared with the past 5-year average growth rate of -1.3%. By 2020, we can expect Wärtsilä Oyj Abp’s bottom line to reach €486m, a jump from the current trailing-twelve-month of €386m. I will provide a brief commentary around the figures and analyst expectations in the near term. For those keen to understand more about other aspects of the company, you can research its fundamentals here.

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View our latest analysis for Wärtsilä Oyj Abp

Exciting times ahead?

The longer term view from the 16 analysts covering WRT1V is one of positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To understand the overall trajectory of WRT1V'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.

HLSE:WRT1V Past and Future Earnings, May 18th 2019

By 2022, WRT1V's earnings should reach €630m, from current levels of €386m, resulting in an annual growth rate of 14%. EPS reaches €1.06 in the final year of forecast compared to the current €0.65 EPS today. With a current profit margin of 7.4%, this movement will result in a margin of 9.9% by 2022.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For Wärtsilä Oyj Abp, there are three essential 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 Wärtsilä Oyj Abp 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 Wärtsilä Oyj Abp is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Wärtsilä Oyj Abp? 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.