Plastiques du Val de Loire (EPA:PVL): What's The Analyst Consensus Outlook?

In this article:

Want to participate in a research study? Help shape the future of investing tools and earn a $60 gift card!

Plastiques du Val de Loire's (EPA:PVL) announced its latest earnings update in September 2018, which revealed that the business experienced a slight headwind with earnings falling from €42m to €40m, a change of -6.6%. Below, I've presented key growth figures on how market analysts view Plastiques du Val de Loire's earnings growth trajectory over the next couple of years and whether the future looks brighter. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings.

View our latest analysis for Plastiques du Val de Loire

Analysts' expectations for the coming year seems pessimistic, with earnings decreasing by -4.8%. Beyond this, earnings should continue to be below today's level, with a decrease of -5.3% in 2021, eventually reaching €38m in 2022.

ENXTPA:PVL Past and Future Earnings, March 27th 2019
ENXTPA:PVL Past and Future Earnings, March 27th 2019

Although it is helpful to be aware of the growth year by year relative to today’s value, it may be more insightful analyzing the rate at which the business is rising or falling every year, on average. The pro of this technique is that it ignores near term flucuations and accounts for the overarching direction of Plastiques du Val de Loire's earnings trajectory over time, fluctuate up and down. To compute this rate, I put a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 3.5%. This means, we can presume Plastiques du Val de Loire will grow its earnings by 3.5% every year for the next couple of years.

Next Steps:

For Plastiques du Val de Loire, there are three important factors you should look at:

  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 PVL 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 PVL is currently mispriced by the market.

  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of PVL? 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.

Advertisement