ASR Nederland N.V. (AMS:ASRNL): Immense Growth Potential?

In December 2018, ASR Nederland N.V. (AMS:ASRNL) announced its earnings update. Overall, analyst consensus outlook appear cautiously subdued, with profits predicted to rise by 3.7% next year relative to the higher past 5-year average growth rate of 20%. Presently, with latest-twelve-month earnings at €646m, we should see this growing to €670m by 2020. Below is a brief commentary around ASR Nederland’s earnings outlook going forward, which may give you a sense of market sentiment for the company. Investors wanting to learn more about other aspects of the company should research its fundamentals here.

See our latest analysis for ASR Nederland

What can we expect from ASR Nederland in the longer term?

The view from 8 analysts over the next three years is one of 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 get an idea of the overall earnings growth trend for ASRNL, 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.

ENXTAM:ASRNL Past and Future Earnings, August 20th 2019
ENXTAM:ASRNL Past and Future Earnings, August 20th 2019

From the current net income level of €646m and the final forecast of €720m by 2022, the annual rate of growth for ASRNL’s earnings is 4.8%. EPS reaches €5.12 in the final year of forecast compared to the current €4.58 EPS today. Margins are currently sitting at 11%, which is expected to expand to 14% by 2022.

Next Steps:

Future outlook is only one aspect when you’re building an investment case for a stock. For ASR Nederland, I’ve put together three key aspects you should further examine:

  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 ASR Nederland 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 ASR Nederland is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of ASR Nederland? 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.