In This Article:
Since Amsterdam Commodities NV (AMS:ACOMO) released its earnings in June 2018, analyst consensus outlook appear cautiously optimistic, with earnings expected to grow by 5.0% in the upcoming year relative to the past 5-year average growth rate of 2.8%. Currently with trailing-twelve-month earnings of €31m, we can expect this to reach €32m by 2019. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for Amsterdam Commodities in the longer term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
See our latest analysis for Amsterdam Commodities
Exciting times ahead?
The 4 analysts covering ACOMO view its longer term outlook with a 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 get an idea of the overall earnings growth trend for ACOMO, 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 2021, ACOMO’s earnings should reach €36m, from current levels of €32m, resulting in an annual growth rate of 4.7%. EPS reaches €1.4 in the final year of forecast compared to the current €1.33 EPS today. The primary reason for earnings growth is due to cost-cutting initiatives, since top-line is predicted to rise at a slower pace than earnings. Margins is currently sitting at 4.6%, which is expected to expand to 5.0% by 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Amsterdam Commodities, I’ve compiled three relevant factors you should further research:
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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.
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Valuation: What is Amsterdam Commodities 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 Amsterdam Commodities is currently mispriced by the market.
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Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Amsterdam Commodities? 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.