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On 31 December 2018, Credit Suisse Group AG (VTX:CSGN) announced its earnings update. Overall, analysts seem extremely confident, with profits predicted to ramp up by an impressive 61% next year, against the past 5-year average growth rate of -23%. Currently with trailing-twelve-month earnings of CHF2.1b, we can expect this to reach CHF3.3b by 2020. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for Credit Suisse Group in the longer term. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
View our latest analysis for Credit Suisse Group
How will Credit Suisse Group perform in the near future?
The 17 analysts covering CSGN view its longer term outlook with a 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 CSGN’s earnings growth over these next few years.
By 2022, CSGN’s earnings should reach CHF4.3b, from current levels of CHF2.1b, resulting in an annual growth rate of 22%. EPS reaches CHF1.81 in the final year of forecast compared to the current CHF0.80 EPS today. With a current profit margin of 9.9%, this movement will result in a margin of 19% by 2022.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Credit Suisse Group, I’ve compiled three essential factors 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 Credit Suisse 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 Credit Suisse 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 Credit Suisse 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!
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. On rare occasion, data errors may occur. Thank you for reading.