In December 2017, Bank Of Ireland Group plc (ISE:BIRG) released its most recent earnings update. Generally, analyst consensus outlook appear cautiously subdued, as a 8.77% rise in profits is expected in the upcoming year, relative to the higher past 5-year average growth rate of 44.41%. By 2019, we can expect Bank Of Ireland Group’s bottom line to reach €691.78M, a jump from the current €636.00M. I will provide a brief commentary around the figures and analyst expectations in the near term. For those keen to understand more about other aspects of the company, you can research its fundamentals here. Check out our latest analysis for Bank Of Ireland Group
How is Bank Of Ireland Group going to perform in the near future?
The view from 14 analysts over the next three years is one of positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To get an idea of the overall earnings growth trend for BIRG, 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.
This results in an annual growth rate of 9.70% based on the most recent earnings level of €636.00M to the final forecast of €866.89M by 2021. This leads to an EPS of €0.8 in the final year of projections relative to the current EPS of €0.59. The primary reason for earnings growth is due to cost cutting activities, as revenues is expected to grow much slower than earnings. Margins is currently sitting at 21.95%, which is expected to expand to 27.85% by 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Bank Of Ireland Group, there are three relevant aspects you should look at:
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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 Bank Of Ireland Group 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 Bank Of Ireland Group 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 Bank Of Ireland Group? 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 pass 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.