Koninklijke Vopak N.V. (AMS:VPK): Immense Growth Potential?
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Looking at Koninklijke Vopak N.V.’s (AMS:VPK) earnings update on 31 December 2018, the consensus outlook from analysts appear fairly confident, with profits predicted to increase by 28% next year against the past 5-year average growth rate of -1.5%. By 2020, we can expect Koninklijke Vopak’s bottom line to reach €327m, a jump from the current trailing-twelve-month of €255m. Below is a brief commentary on the longer term outlook the market has for Koninklijke Vopak. For those interested in more of an analysis of the company, you can research its fundamentals here.
Check out our latest analysis for Koninklijke Vopak
How will Koninklijke Vopak perform in the near future?
The 13 analysts covering VPK view its longer term outlook with a positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To get an idea of the overall earnings growth trend for VPK, 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.
By 2022, VPK’s earnings should reach €369m, from current levels of €255m, resulting in an annual growth rate of 8.2%. This leads to an EPS of €2.74 in the final year of projections relative to the current EPS of €1.99. Margins are currently sitting at 20%, which is expected to expand to 25% by 2022.
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 fundamental factors 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 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.
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. On rare occasion, data errors may occur. Thank you for reading.
