Yahoo Finance What Are Analysts Saying About The Future Of Atos SE's (EPA:ATO)?
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Based on Atos SE's (EPA:ATO) earnings update in December 2018, analyst forecasts appear to be bearish, as a 0.2% fall in profits is expected in the upcoming year compared with the past 5-year average growth rate of 21%. Currently with a trailing-twelve-month profit of €630m, the consensus growth rate suggests that earnings will drop to €628m by 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Atos in the longer term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
See our latest analysis for Atos
How will Atos perform in the near future?
The longer term expectations from the 12 analysts of ATO is tilted towards the positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To understand the overall trajectory of ATO's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
By 2022, ATO's earnings should reach €795m, from current levels of €630m, resulting in an annual growth rate of 7.8%. This leads to an EPS of €7.11 in the final year of projections relative to the current EPS of €5.94. With a current profit margin of 5.1%, this movement will result in a margin of 6.6% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Atos, I've put together three important aspects 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 Atos 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 Atos is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Atos? 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.
