In December 2017, Ramirent Oyj (HLSE:RMR1V) released its most recent earnings update. Generally, the consensus outlook from analysts appear fairly confident, with earnings expected to grow by 8.51% in the upcoming year against the past 5-year average growth rate of -3.02%. Currently with earnings of €63.45M, we can expect this to reach €68.85M by 2019. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for Ramirent Oyj in the longer term. Investors wanting to learn more about other aspects of the company should research its fundamentals here. View our latest analysis for Ramirent Oyj
How will Ramirent Oyj perform in the near future?
Over the next three years, it seems the consensus view of the 7 analysts covering RMR1V is skewed towards the positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. 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 RMR1V’s earnings growth over these next few years.
By 2021, RMR1V’s earnings should reach €70.97M, from current levels of €63.45M, resulting in an annual growth rate of 3.58%. This leads to an EPS of €0.66 in the final year of projections relative to the current EPS of €0.59. The main reason for growth is a result of reduction in costs rather than purely top-line expansion as earnings is increasing at a faster rate. With a current profit margin of 8.77%, this movement will result in a margin of 9.51% by 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Ramirent Oyj, there are three relevant aspects 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 Ramirent Oyj 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 Ramirent Oyj 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 Ramirent Oyj? 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.