In December 2017, MOL Magyar Olaj- es Gazipari Nyilvanosan Mukodo Reszvenytarsasag (BUSE:MOL) announced its latest earnings update, which indicated that the company benefited from a robust tailwind, eventuating to a double-digit earnings growth of 17.34%. Today I want to provide a brief commentary on how market analysts view MOL Magyar Olaj- es Gazipari Nyilvanosan Mukodo Reszvenytarsasag’s earnings growth outlook over the next few years and whether the future looks even brighter than the past. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings. Check out our latest analysis for MOL Magyar Olaj- es Gazipari Nyilvanosan Mukodo Reszvenytarsasag
Analysts’ expectations for the coming year seems pessimistic, with earnings decreasing by -8.02%. But in the following year, there is a complete contrast in performance, with reaching double digit 4.75% compared to today’s level and continues to increase to FT345.94B in 2021.
While it’s informative knowing the growth rate each year relative to today’s level, it may be more insightful to analyze the rate at which the company is rising or falling on average every year. The benefit of this method is that it removes the impact of near term flucuations and accounts for the overarching direction of MOL Magyar Olaj- es Gazipari Nyilvanosan Mukodo Reszvenytarsasag’s earnings trajectory over time, which may be more relevant for long term investors. 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 0.42%. This means, we can assume MOL Magyar Olaj- es Gazipari Nyilvanosan Mukodo Reszvenytarsasag will grow its earnings by 0.42% every year for the next couple of years.
Next Steps:
For MOL Magyar Olaj- es Gazipari Nyilvanosan Mukodo Reszvenytarsasag, there are three pertinent 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 MOL 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 MOL 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 MOL? 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.