What Should Investors Know About Ordina N.V.'s (AMS:ORDI) Earnings Trajectory?
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In February 2019, Ordina N.V. (AMS:ORDI) released its latest earnings announcement, which showed that the company experienced a substantial tailwind, more than doubling its earnings from the prior year. Below, I've presented key growth figures on how market analysts view Ordina's earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.
See our latest analysis for Ordina
Market analysts' consensus outlook for next year seems buoyant, with earnings rising by a significant 95%. This strong growth in earnings is expected to continue, bringing the bottom line up to €20m by 2022.
Although it’s useful to be aware of the growth rate each year relative to today’s level, it may be more insightful evaluating the rate at which the company is moving every year, on average. The advantage of this technique is that we can get a better picture of the direction of Ordina's earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate 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 24%. This means that, we can assume Ordina will grow its earnings by 24% every year for the next couple of years.
Next Steps:
For Ordina, there are 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 ORDI 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 ORDI is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of ORDI? 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.
