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In December 2018, Assiteca S.p.A. (BIT:ASSI) released its earnings update. Generally, analyst consensus outlook seem in-line with historical trends, with earnings growth rate expected to be 14% in the upcoming year, relative to the past five-year average earnings growth of 14% per year. Presently, with latest-twelve-month earnings at €4.6m, we should see this growing to €5.2m by 2020. Below is a brief commentary around Assiteca's earnings outlook going forward, which may give you a sense of market sentiment for the company. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
View our latest analysis for Assiteca
How will Assiteca perform in the near future?
The longer term expectations from the 2 analysts of ASSI is tilted towards the positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of ASSI's earnings growth over these next few years.
By 2022, ASSI's earnings should reach €6.1m, from current levels of €4.6m, resulting in an annual growth rate of 8.9%. EPS reaches €0.35 in the final year of forecast compared to the current €0.14 EPS today. Margins are currently sitting at 6.8%, which is expected to expand to 8.0% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Assiteca, I've compiled three relevant factors you should further examine:
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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 Assiteca 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 Assiteca 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 Assiteca? 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 editorial-team@simplywallst.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.