Cramo Oyj (HEL:CRA1V): What Does The Future Look Like?
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On 31 December 2018, Cramo Oyj (HEL:CRA1V) released its earnings update. Generally, it seems that analyst expectations are fairly bearish, as a 7.5% rise in profits is expected in the upcoming year, relative to the higher past 5-year average growth rate of 24%. Currently with trailing-twelve-month earnings of €85m, we can expect this to reach €91m by 2020. Below is a brief commentary on the longer term outlook the market has for Cramo Oyj. For those interested in more of an analysis of the company, you can research its fundamentals here.
View our latest analysis for Cramo Oyj
How is Cramo Oyj going to perform in the near future?
Over the next three years, it seems the consensus view of the 5 analysts covering CRA1V is skewed towards the positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To understand the overall trajectory of CRA1V’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, CRA1V’s earnings should reach €100m, from current levels of €85m, resulting in an annual growth rate of 4.2%. EPS reaches €2.25 in the final year of forecast compared to the current €1.9 EPS today. Margins are currently sitting at 11%, which is expected to expand to 11% by 2022.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Cramo Oyj, I’ve put together 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 Cramo Oyj 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 Cramo Oyj is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Cramo Oyj? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
