What Should You Know About The Future Of Van Lanschot Kempen N.V.'s (AMS:VLK)?

Looking at Van Lanschot Kempen N.V.'s (AMS:VLK) earnings update in December 2018, analysts seem fairly confident, with profits predicted to increase by 41% next year relative to the past 5-year average growth rate of 6.2%. Currently with trailing-twelve-month earnings of €62m, we can expect this to reach €87m by 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.

Check out our latest analysis for Van Lanschot Kempen

How is Van Lanschot Kempen going to perform in the near future?

The view from 3 analysts over the next three years is one of 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 VLK's earnings growth over these next few years.

ENXTAM:VLK Past and Future Earnings, July 23rd 2019
ENXTAM:VLK Past and Future Earnings, July 23rd 2019

From the current net income level of €62m and the final forecast of €85m by 2022, the annual rate of growth for VLK’s earnings is 8.5%. EPS reaches €2.04 in the final year of forecast compared to the current €1.51 EPS today. In 2022, VLK's profit margin will have expanded from 12% to 16%.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For Van Lanschot Kempen, I've compiled three key factors 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 Van Lanschot Kempen 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 Van Lanschot Kempen is currently mispriced by the market.

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