In This Article:
In June 2018, Etteplan Oyj (HEL:ETTE) announced its earnings update. Overall, analysts seem cautiously optimistic, as upcoming earnings growth is expected to be 21% next year, similar to the range of average earnings growth for the past five years of 23% per year. With trailing-twelve-month net income at current levels of €13m, we should see this rise to €16m in 2019. I will provide a brief commentary around the figures and analyst expectations in the near term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
Check out our latest analysis for Etteplan Oyj
What can we expect from Etteplan Oyj in the longer term?
The view from 3 analysts over the next three years is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around 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 ETTE’s earnings growth over these next few years.
From the current net income level of €11m and the final forecast of €16m by 2021, the annual rate of growth for ETTE’s earnings is 8.9%. This leads to an EPS of €0.73 in the final year of projections relative to the current EPS of €0.47. Growth in earnings appears to be a result of cost cutting activities, as revenues is expected to grow much slower than earnings. Margins is currently sitting at 5.3%, which is expected to expand to 5.9% by 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Etteplan Oyj, I’ve put together three fundamental 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 Etteplan 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 Etteplan 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 Etteplan 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 past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.