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Proximus PLC (EBR:PROX): What Are The Future Prospects?

Simply Wall St

Since Proximus PLC (EBR:PROX) released its earnings in March 2019, the consensus outlook from analysts appear fairly confident, with earnings expected to grow by 3.2% in the upcoming year compared with the past 5-year average growth rate of -4.8%. Presently, with latest-twelve-month earnings at €508m, we should see this growing to €524m by 2020. Below is a brief commentary on the longer term outlook the market has for Proximus. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.

Check out our latest analysis for Proximus

How is Proximus going to perform in the near future?

The view from 18 analysts over the next three years is one of positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. 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.

ENXTBR:PROX Past and Future Earnings, July 30th 2019

From the current net income level of €508m and the final forecast of €544m by 2022, the annual rate of growth for PROX’s earnings is 2.6%. EPS reaches €1.73 in the final year of forecast compared to the current €1.57 EPS today. With a current profit margin of 8.8%, this movement will result in a margin of 9.5% by 2022.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For Proximus, I've put together three important factors you should further research:

  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 Proximus 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 Proximus is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Proximus? 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.