Based on Le Bélier SA's (EPA:BELI) earnings update in December 2018, the consensus outlook from analysts appear pessimistic, with earnings expected to decline by 17% in the upcoming year against the past 5-year average growth rate of 11%. Currently with a trailing-twelve-month profit of €27m, the consensus growth rate suggests that earnings will drop to €23m by 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
See our latest analysis for Le Bélier
Exciting times ahead?
The 3 analysts covering BELI view its longer term outlook with a positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To understand the overall trajectory of BELI's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
By 2022, BELI's earnings should reach €29m, from current levels of €27m, resulting in an annual growth rate of 2.3%. EPS reaches €4.39 in the final year of forecast compared to the current €4.15 EPS today. Analysts are predicting this high revenue growth to squeeze profit margins over time, from 7.6% to 7.5% by the end of 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Le Bélier, I've put together three fundamental factors you should further research:
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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 Le Bélier 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 Le Bélier 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 Le Bélier? 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.