PUMA SE (FRA:PUM): What Does The Future Look Like?
Based on PUMA SE’s (FRA:PUM) earnings update in June 2018, the consensus outlook from analysts appear fairly confident, with earnings growth rate expected to be 38% next year, which is within range of the past five-year average earnings growth of 42%. Currently with trailing-twelve-month earnings of €163m, we can expect this to reach €225m by 2019. Below is a brief commentary on the longer term outlook the market has for PUMA. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
View our latest analysis for PUMA
What can we expect from PUMA in the longer term?
Over the next three years, it seems the consensus view of the 21 analysts covering PUM is skewed towards the 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 get an idea of the overall earnings growth trend for PUM, 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 €136m and the final forecast of €293m by 2021, the annual rate of growth for PUM’s earnings is 21%. This leads to an EPS of €22.47 in the final year of projections relative to the current EPS of €9.09. Earnings growth appears to be a result of cost cutting activities, as revenues is expected to grow much slower than earnings. Margins is currently sitting at 3.3%, which is expected to expand to 5.4% by 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For PUMA, I’ve put together three essential factors you should further examine:
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 PUMA 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 PUMA is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of PUMA? 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 editorial-team@simplywallst.com.
