How Do Analysts See Société Générale Société anonyme (EPA:GLE) Performing In The Years Ahead?
In December 2018, Société Générale Société anonyme (EPA:GLE) announced its latest earnings update, which showed that the company gained from a strong tailwind, leading to a double-digit earnings growth of 45%. Below, I’ve laid out key growth figures on how market analysts predict Société Générale Société anonyme’s earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings.
See our latest analysis for Société Générale Société anonyme
Analysts’ outlook for the coming year seems rather subdued, with earnings rising by a single digit 1.3%. The growth outlook in the following year seems much more positive with rates generating double digit 13% compared to today’s earnings, and finally hitting €4.0b by 2022.
While it’s informative knowing the growth rate year by year relative to today’s figure, it may be more valuable gauging the rate at which the earnings are rising or falling every year, on average. The advantage of this technique is that we can get a better picture of the direction of Société Générale Société anonyme’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 put a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 5.8%. This means, we can assume Société Générale Société anonyme will grow its earnings by 5.8% every year for the next few years.
Next Steps:
For Société Générale Société anonyme, I’ve put together three pertinent factors you should further examine:
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 GLE 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 GLE is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of GLE? 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.
