What Should Investors Know About Robertet SA's (EPA:RBT) Growth?

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Based on Robertet SA's (EPA:RBT) earnings update on 31 December 2018, it seems that analyst expectations are fairly bearish, with earnings expected to grow by 11% in the upcoming year against the higher past 5-year average growth rate of 15%. By 2020, we can expect Robertet’s bottom line to reach €57m, a jump from the current trailing-twelve-month of €52m. Below is a brief commentary around Robertet's earnings outlook going forward, which may give you a sense of market sentiment for the company. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.

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Check out our latest analysis for Robertet

What can we expect from Robertet in the longer term?

Longer term expectations from the 1 analysts covering RBT’s stock is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To get an idea of the overall earnings growth trend for RBT, 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.

ENXTPA:RBT Past and Future Earnings, May 25th 2019
ENXTPA:RBT Past and Future Earnings, May 25th 2019

This results in an annual growth rate of 12% based on the most recent earnings level of €52m to the final forecast of €73m by 2022. EPS reaches €31.69 in the final year of forecast compared to the current €22.41 EPS today. Margins are currently sitting at 9.9%, which is expected to expand to 12% by 2022.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For Robertet, I've compiled three key aspects you should further examine:

  1. 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.

  2. Valuation: What is Robertet 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 Robertet is currently mispriced by the market.

  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Robertet? 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.

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