Based on Société Générale Société anonyme's (EPA:GLE) earnings update in March 2019, it seems that analyst forecasts are fairly optimistic, as a 7.4% increase in profits is expected in the upcoming year, compared with the past 5-year average growth rate of 5.6%. Currently with trailing-twelve-month earnings of €3.4b, we can expect this to reach €3.7b by 2020. Below is a brief commentary on the longer term outlook the market has for Société Générale Société anonyme. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
How will Société Générale Société anonyme perform in the near future?
Over the next three years, it seems the consensus view of the 14 analysts covering GLE is skewed towards the positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. 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.
This results in an annual growth rate of 7.2% based on the most recent earnings level of €3.4b to the final forecast of €4.2b by 2022. This leads to an EPS of €4.52 in the final year of projections relative to the current EPS of €4.24. Margins are currently sitting at 14%, which is expected to expand to 16% by 2022.
Future outlook is only one aspect when you're building an investment case for a stock. For Société Générale Société anonyme, I've compiled three fundamental factors 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 Société Générale Société anonyme 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 Société Générale Société anonyme is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Société Générale Société anonyme? 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.