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What Do Analysts Think About L'Air Liquide S.A.'s (EPA:AI) Growth?

Looking at L'Air Liquide S.A.'s (EPA:AI) earnings update in December 2018, analyst consensus outlook appear cautiously optimistic, as a 9.9% increase in profits is expected in the upcoming year, compared with the past 5-year average growth rate of 7.4%. Presently, with latest-twelve-month earnings at €2.1b, we should see this growing to €2.3b by 2020. Below is a brief commentary around L'Air Liquide S.A's earnings outlook going forward, which may give you a sense of market sentiment for the company. For those interested in more of an analysis of the company, you can research its fundamentals here.

View our latest analysis for L'Air Liquide S.A

How will L'Air Liquide S.A perform in the near future?

The longer term expectations from the 18 analysts of AI is tilted towards the positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.

ENXTPA:AI Past and Future Earnings, July 29th 2019
ENXTPA:AI Past and Future Earnings, July 29th 2019

By 2022, AI's earnings should reach €2.8b, from current levels of €2.1b, resulting in an annual growth rate of 10%. EPS reaches €6.42 in the final year of forecast compared to the current €4.95 EPS today. Margins are currently sitting at 10%, 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 L'Air Liquide S.A, I've put together three key aspects you should further research:

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  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 L'Air Liquide S.A 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 L'Air Liquide S.A is currently mispriced by the market.

  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of L'Air Liquide S.A? 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.