On 31 December 2018, Unibail-Rodamco-Westfield (AMS:URW) released its earnings update. Generally, it seems that analyst forecasts are substantially optimistic, with profits predicted to ramp up by an impressive 57% next year, relative to the historical 5-year average growth rate of 4.9%. With trailing-twelve-month net income at current levels of €1.0b, we should see this rise to €1.6b in 2020. Below is a brief commentary around Unibail-Rodamco-Westfield's earnings outlook going forward, which may give you a sense of market sentiment for the company. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
Exciting times ahead?
The view from 15 analysts over the next three years is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around 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.
From the current net income level of €1.0b and the final forecast of €1.5b by 2022, the annual rate of growth for URW’s earnings is 11%. EPS reaches €13.83 in the final year of forecast compared to the current €8.42 EPS today. With a current profit margin of 35%, this movement will result in a margin of 46% by 2022.
Future outlook is only one aspect when you're building an investment case for a stock. For Unibail-Rodamco-Westfield, there are three pertinent aspects 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 Unibail-Rodamco-Westfield 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 Unibail-Rodamco-Westfield is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Unibail-Rodamco-Westfield? 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. Thank you for reading.