Based on Rubis's (EPA:RUI) earnings update on 31 December 2018, analysts seem cautiously optimistic, with earnings expected to grow by 23% in the upcoming year against the past 5-year average growth rate of 20%. With trailing-twelve-month net income at current levels of €254m, we should see this rise to €313m in 2020. Below is a brief commentary on the longer term outlook the market has for Rubis. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
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How is Rubis going to perform in the near future?
The longer term view from the 10 analysts covering RUI is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To understand the overall trajectory of RUI's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
From the current net income level of €254m and the final forecast of €360m by 2022, the annual rate of growth for RUI’s earnings is 10%. EPS reaches €3.66 in the final year of forecast compared to the current €2.65 EPS today. Margins are currently sitting at 5.3%, approximately the same as previous years. With analysts forecasting revenue growth of 0.38814 and RUI's net income growth expected to roughly track that, this company may add value for shareholders over time.
Future outlook is only one aspect when you're building an investment case for a stock. For Rubis, there are three key aspects you should further research:
- 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 Rubis 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 Rubis is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Rubis? 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.