Based on ORPEA Société Anonyme’s (EPA:ORP) earnings update in June 2018, analyst consensus outlook appear cautiously subdued, as a 0.6% rise in profits is expected in the upcoming year, relative to the higher past 5-year average growth rate of 14%. Currently with trailing-twelve-month earnings of €90m, we can expect this to reach €90m by 2019. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for ORPEA Société Anonyme in the longer term. For those interested in more of an analysis of the company, you can research its fundamentals here.
How is ORPEA Société Anonyme going to perform in the near future?
The 13 analysts covering ORP view its longer term outlook with a positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. 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.
By 2021, ORP’s earnings should reach €119m, from current levels of €90m, resulting in an annual growth rate of 12%. This leads to an EPS of €4.92 in the final year of projections relative to the current EPS of €1.46. In 2021, ORP’s profit margin will have expanded from 2.9% to 3.0%.
Future outlook is only one aspect when you’re building an investment case for a stock. For ORPEA Société Anonyme, I’ve put together three key aspects you should look at:
- 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 ORPEA Société Anonyme 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 ORPEA Société Anonyme is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of ORPEA Société Anonyme? 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 firstname.lastname@example.org.