What Are Analysts Saying About IMCD N.V.'s (AMS:IMCD) Growth?
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After IMCD N.V.'s (AMS:IMCD) earnings announcement in December 2018, analyst consensus outlook appear cautiously optimistic, with profits predicted to increase by 32% next year, though this is noticeably lower than the historical 5-year average earnings growth of 36%. With trailing-twelve-month net income at current levels of €100m, we should see this rise to €132m in 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for IMCD in the longer term. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
Check out our latest analysis for IMCD
What can we expect from IMCD in the longer term?
Over the next three years, it seems the consensus view of the 7 analysts covering IMCD is skewed towards the 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 IMCD'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.
From the current net income level of €100m and the final forecast of €161m by 2022, the annual rate of growth for IMCD’s earnings is 13%. EPS reaches €3.06 in the final year of forecast compared to the current €1.91 EPS today. With a current profit margin of 4.2%, this movement will result in a margin of 5.1% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For IMCD, I've compiled three relevant factors you should further research:
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.
Valuation: What is IMCD 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 IMCD is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of IMCD? 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.
