Yahoo Finance Hermès International Société en commandite par actions (EPA:RMS): What We Can Expect From This Growth Stock
In December 2018, Hermès International Société en commandite par actions (EPA:RMS) released its earnings update. Generally, it seems that analyst expectations are fairly bearish, with profits predicted to rise by 7.3% next year against the higher past 5-year average growth rate of 12%. With trailing-twelve-month net income at current levels of €1.4b, we should see this rise to €1.5b in 2020. Below is a brief commentary on the longer term outlook the market has for Hermès International Société en commandite par actions. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
View our latest analysis for Hermès International Société en commandite par actions
Exciting times ahead?
The longer term view from the 17 analysts covering RMS is one of positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To get an idea of the overall earnings growth trend for RMS, 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, RMS's earnings should reach €1.8b, from current levels of €1.4b, resulting in an annual growth rate of 7.7%. This leads to an EPS of €17.36 in the final year of projections relative to the current EPS of €13.48. Analysts are predicting this high revenue growth to squeeze profit margins over time, from 24% to 23% by the end of 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Hermès International Société en commandite par actions, I've put together three key 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 Hermès International Société en commandite par actions 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 Hermès International Société en commandite par actions is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Hermès International Société en commandite par actions? 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.
