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Masi Agricola S.p.A.'s (BIT:MASI) released its most recent earnings update in April 2019, which indicated that the company experienced a small tailwind, leading to a single-digit earnings growth of 5.1%. Below, I've presented key growth figures on how market analysts perceive Masi Agricola's earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.
Check out our latest analysis for Masi Agricola
Market analysts' prospects for the coming year seems pessimistic, with earnings reducing by -3.2%. In the next couple of years, earnings are expected to continue to be below today's level, with a decrease of -1.6% in 2021, eventually reaching €7.0m in 2022.
Even though it is informative understanding the growth year by year relative to today’s level, it may be more insightful to analyze the rate at which the company is moving every year, on average. The benefit of this approach is that we can get a better picture of the direction of Masi Agricola's earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To compute 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 -0.02%. This means that, we can assume Masi Agricola will chip away at a rate of -0.02% every year for the next couple of years.
Next Steps:
For Masi Agricola, there are three relevant 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 MASI 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 MASI 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 MASI? 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.