Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
After Sogeclair SA's (EPA:SOG) earnings announcement in December 2018, the consensus outlook from analysts appear fairly confident, as a 12% increase in profits is expected in the upcoming year, compared with the past 5-year average growth rate of 2.6%. With trailing-twelve-month net income at current levels of €6.3m, we should see this rise to €7.1m in 2020. Below is a brief commentary around Sogeclair'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.
How is Sogeclair going to perform in the near future?
The longer term view from the 2 analysts covering SOG 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 SOG'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 €6.3m and the final forecast of €9.6m by 2022, the annual rate of growth for SOG’s earnings is 14%. This leads to an EPS of €3.3 in the final year of projections relative to the current EPS of €2.29. In 2022, SOG's profit margin will have expanded from 4.0% to 5.0%.
Future outlook is only one aspect when you're building an investment case for a stock. For Sogeclair, I've compiled three fundamental 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 Sogeclair 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 Sogeclair is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Sogeclair? 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.