Terna - Rete Elettrica Nazionale Società per Azioni (BIT:TRN): What We Can Expect From This Growth Stock
Since Terna - Rete Elettrica Nazionale Società per Azioni (BIT:TRN) released its earnings in March 2019, analyst consensus outlook appear cautiously subdued, as a 4.3% rise in profits is expected in the upcoming year, against the higher past 5-year average growth rate of 7.0%. Presently, with latest-twelve-month earnings at €707m, we should see this growing to €737m by 2020. Below is a brief commentary on the longer term outlook the market has for Terna - Rete Elettrica Nazionale Società per Azioni. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
See our latest analysis for Terna - Rete Elettrica Nazionale Società per Azioni
How is Terna - Rete Elettrica Nazionale Società per Azioni going to perform in the near future?
The view from 16 analysts over the next three years is one of 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 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 3.2% based on the most recent earnings level of €707m to the final forecast of €777m by 2022. This leads to an EPS of €0.39 in the final year of projections relative to the current EPS of €0.35. This initial high-growth revenue squeezes TRN's margins. However, analysts are expecting earnings growth to catch up, and current margins of 31% to expand to 31% by the end of 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Terna - Rete Elettrica Nazionale Società per Azioni, I've put together three important aspects 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 Terna - Rete Elettrica Nazionale Società per Azioni 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 Terna - Rete Elettrica Nazionale Società per Azioni is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Terna - Rete Elettrica Nazionale Società per Azioni? 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 editorial-team@simplywallst.com. 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.
