Yahoo Finance ABN AMRO Group N.V. (AMS:ABN): Poised For Long Term Success?
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Since ABN AMRO Group N.V. (AMS:ABN) released its earnings in March 2019, analyst consensus outlook appear cautiously subdued, as a 0.9% rise in profits is expected in the upcoming year, compared with the higher past 5-year average growth rate of 18%. With trailing-twelve-month net income at current levels of €2.2b, we should see this rise to €2.2b in 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for ABN AMRO Group in the longer term. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
See our latest analysis for ABN AMRO Group
What can we expect from ABN AMRO Group in the longer term?
The longer term expectations from the 19 analysts of ABN is tilted towards the 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 ABN, 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.
By 2022, ABN's earnings should reach €2.4b, from current levels of €2.2b, resulting in an annual growth rate of 4.1%. EPS reaches €2.37 in the final year of forecast compared to the current €2.35 EPS today. Margins are currently sitting at 26%, which is expected to expand to 27% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For ABN AMRO Group, there are three important 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 ABN AMRO Group 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 ABN AMRO Group is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of ABN AMRO Group? 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.
