Yahoo Finance Will Eiffage SA's (EPA:FGR) Earnings Grow Over The Next Year?
Based on Eiffage SA's (EPA:FGR) earnings update in December 2018, it seems that analyst expectations are fairly bearish, as a 14% rise in profits is expected in the upcoming year, relative to the higher past 5-year average growth rate of 21%. Currently with trailing-twelve-month earnings of €629m, we can expect this to reach €714m by 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Eiffage 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 Eiffage
Exciting times ahead?
Longer term expectations from the 15 analysts covering FGR’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 understand the overall trajectory of FGR'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.
This results in an annual growth rate of 8.7% based on the most recent earnings level of €629m to the final forecast of €823m by 2022. EPS reaches €8.45 in the final year of forecast compared to the current €6.49 EPS today. With a current profit margin of 3.7%, this movement will result in a margin of 4.5% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Eiffage, I've put together three pertinent aspects 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 Eiffage 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 Eiffage is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Eiffage? 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.
