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Looking at Publicis Groupe S.A.'s (EPA:PUB) earnings update in December 2018, the consensus outlook from analysts appear fairly confident, with profits predicted to increase by 14% next year against the past 5-year average growth rate of -8.9%. Currently with trailing-twelve-month earnings of €919m, we can expect this to reach €1.0b by 2020. Below is a brief commentary around Publicis Groupe's earnings outlook going forward, which may give you a sense of market sentiment for the company. For those interested in more of an analysis of the company, you can research its fundamentals here.
Can we expect Publicis Groupe to keep growing?
The view from 14 analysts over the next three years is one of 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 PUB, 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.
From the current net income level of €919m and the final forecast of €1.2b by 2022, the annual rate of growth for PUB’s earnings is 8.6%. This leads to an EPS of €5.31 in the final year of projections relative to the current EPS of €4.01. In 2022, PUB's profit margin will have expanded from 10% to 11%.
Future outlook is only one aspect when you're building an investment case for a stock. For Publicis Groupe, there are three relevant 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 Publicis Groupe 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 Publicis Groupe is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Publicis Groupe? 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 firstname.lastname@example.org. 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.