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The most recent earnings update Unibail-Rodamco-Westfield’s (AMS:URW) released in December 2018 revealed that the business experienced a substantial headwind with earnings declining by -58%. Below is a brief commentary on my key takeaways on how market analysts perceive Unibail-Rodamco-Westfield’s earnings growth trajectory over the next couple of years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.
Market analysts’ consensus outlook for this coming year seems buoyant, with earnings growing by a significant 84%. This level of earnings is expected to be maintained in the following year before declining in 2022 to €1.3b.
Although it is informative knowing the rate of growth year by year relative to today’s level, it may be more valuable estimating the rate at which the business is rising or falling on average every year. The benefit of this method is that we can get a bigger picture of the direction of Unibail-Rodamco-Westfield’s earnings trajectory over the long run, irrespective of near term fluctuations, be more volatile. To compute this rate, I’ve inserted a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 11%. This means that, we can expect Unibail-Rodamco-Westfield will grow its earnings by 11% every year for the next couple of years.
For Unibail-Rodamco-Westfield, I’ve compiled three key factors 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 URW 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 URW is currently mispriced by the market.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of URW? 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 email@example.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. On rare occasion, data errors may occur. Thank you for reading.