Yahoo Finance What Should You Know About OMV Aktiengesellschaft's (VIE:OMV) Growth?
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After OMV Aktiengesellschaft's (VIE:OMV) earnings announcement on 31 March 2019, the consensus outlook from analysts appear fairly confident, with earnings growth rate expected to be 25% in the upcoming year, relative to the past five-year average earnings growth of 24% per year. Currently with trailing-twelve-month earnings of €1.4b, we can expect this to reach €1.8b by 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
View our latest analysis for OMV
What can we expect from OMV in the longer term?
The 16 analysts covering OMV view its longer term outlook with a 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 OMV'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 7.9% based on the most recent earnings level of €1.4b to the final forecast of €2.1b by 2022. This leads to an EPS of €6.88 in the final year of projections relative to the current EPS of €4.4. In 2022, OMV's profit margin will have expanded from 6.3% to 9.1%.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For OMV, there are three important factors you should look at:
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 OMV 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 OMV is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of OMV? 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.
