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Motor Oil (Hellas) Corinth Refineries S.A. (ATH:MOH): Immense Growth Potential?

Simply Wall St

Based on Motor Oil (Hellas) Corinth Refineries S.A.'s (ATH:MOH) earnings update in March 2019, analysts seem cautiously bearish, as a 0.5% rise in profits is expected in the upcoming year, relative to the higher past 5-year average growth rate of 41%. Currently with trailing-twelve-month earnings of €257m, we can expect this to reach €259m by 2020. Below is a brief commentary around Motor Oil (Hellas) Corinth Refineries's earnings outlook going forward, which may give you a sense of market sentiment for the company. Investors wanting to learn more about other aspects of the company should research its fundamentals here.

View our latest analysis for Motor Oil (Hellas) Corinth Refineries

How will Motor Oil (Hellas) Corinth Refineries perform in the near future?

The longer term view from the 8 analysts covering MOH is one of negative sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of MOH's earnings growth over these next few years.

ATSE:MOH Past and Future Earnings, August 7th 2019

By 2022, MOH's earnings should reach €245m, from current levels of €257m, resulting in an annual growth rate of -1.3%. However, if we exclude extraordinary items from earnings, we see that the profits is predicted to rise over time, resulting in an EPS of €2.84 in the final year of forecast compared to the current €2.32 EPS today. The primary reason for earnings contraction is due to a reduction in the top line of -1.6%, squeezing the bottom line. However, the current margin of 2.7% is expected to expand to 2.8% by 2022.

Next Steps:

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