Will VERBUND AG’s (VIE:VER) Earnings Grow In The Year Ahead?
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Looking at VERBUND AG’s (VIE:VER) earnings update in September 2018, analyst consensus outlook appear vastly optimistic, as a 51% rise in profits is expected in the upcoming year, compared with the historical 5-year average growth rate of -15%. With trailing-twelve-month net income at current levels of €301m, we should see this rise to €456m in 2020. Below is a brief commentary around VERBUND’s earnings outlook going forward, which may give you a sense of market sentiment for the company. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
Check out our latest analysis for VERBUND
Exciting times ahead?
Longer term expectations from the 14 analysts covering VER’s stock is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To get an idea of the overall earnings growth trend for VER, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
By 2022, VER’s earnings should reach €655m, from current levels of €301m, resulting in an annual growth rate of 15%. EPS reaches €1.99 in the final year of forecast compared to the current €0.87 EPS today. Margins are currently sitting at 10%, which is expected to expand to 16% by 2022.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For VERBUND, I’ve put together three fundamental 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 VERBUND 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 VERBUND is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of VERBUND? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
