Capacent Holding AB (publ) (STO:CAPAC): What Does The Future Look Like?
After Capacent Holding AB (publ)'s (STO:CAPAC) earnings announcement on 31 December 2018, analysts seem cautiously optimistic, as a 43% increase in profits is expected in the upcoming year, compared with the past 5-year average growth rate of 0.6%. By 2020, we can expect Capacent Holding’s bottom line to reach kr17m, a jump from the current trailing-twelve-month of kr12m. Below is a brief commentary on the longer term outlook the market has for Capacent Holding. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
View our latest analysis for Capacent Holding
Can we expect Capacent Holding to keep growing?
Over the next three years, it seems the consensus view of the 1 analysts covering CAPAC is skewed towards the positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To get an idea of the overall earnings growth trend for CAPAC, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
From the current net income level of kr12m and the final forecast of kr21m by 2022, the annual rate of growth for CAPAC’s earnings is 19%. This leads to an EPS of SEK7 in the final year of projections relative to the current EPS of SEK4.24. In 2022, CAPAC's profit margin will have expanded from 4.4% to 6.4%.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Capacent Holding, I've put together three fundamental 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 Capacent Holding 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 Capacent Holding is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Capacent Holding? 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.
