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Based on Europris ASA's (OB:EPR) earnings update in March 2019, analysts seem cautiously bearish, as a 3.7% rise in profits is expected in the upcoming year, compared with the higher past 5-year average growth rate of 26%. Currently with trailing-twelve-month earnings of øre429m, we can expect this to reach øre445m by 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
What can we expect from Europris in the longer term?
The longer term expectations from the 6 analysts of EPR is tilted towards the positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of EPR's earnings growth over these next few years.
From the current net income level of øre429m and the final forecast of øre572m by 2022, the annual rate of growth for EPR’s earnings is 12%. This leads to an EPS of NOK3.22 in the final year of projections relative to the current EPS of NOK2.59. With a current profit margin of 7.4%, this movement will result in a margin of 8.6% by 2022.
Future outlook is only one aspect when you're building an investment case for a stock. For Europris, I've put together three relevant aspects you should look at:
- 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 Europris 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 Europris is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Europris? 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 email@example.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.