In This Article:
The most recent earnings release Viscofan SA.’s (BME:VIS) announced in December 2017 indicated that the company endured a minor headwind with earnings falling from €125.08M to €122.10M, a change of -2.38%. Today I want to provide a brief commentary on how market analysts predict Viscofan’s earnings growth trajectory over the next couple of years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in. See our latest analysis for Viscofan
Analysts’ expectations for the coming year seems rather subdued, with earnings climbing by a single digit 5.95%. The growth outlook in the following year seems much more buoyant with rates reaching double digit 12.06% compared to today’s earnings, and finally hitting €149.72M by 2021.
While it’s informative knowing the rate of growth year by year relative to today’s value, it may be more beneficial analyzing the rate at which the company is rising or falling on average every year. The pro of this approach is that it ignores near term flucuations and accounts for the overarching direction of Viscofan’s earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I’ve appended a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 5.06%. This means that, we can assume Viscofan will grow its earnings by 5.06% every year for the next couple of years.
Next Steps:
For Viscofan, I’ve put together 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 VIS 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 VIS 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 VIS? 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.