Mapfre, S.A. (BME:MAP): What We Can Expect From This Growth Stock

After Mapfre, S.A.'s (BME:MAP) earnings announcement in March 2019, analyst consensus outlook appear cautiously optimistic, with earnings expected to grow by 47% in the upcoming year against the past 5-year average growth rate of -2.9%. By 2020, we can expect Mapfre’s bottom line to reach €778m, a jump from the current trailing-twelve-month of €529m. I will provide a brief commentary around the figures and analyst expectations in the near term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.

View our latest analysis for Mapfre

Exciting times ahead?

The 9 analysts covering MAP view its longer term outlook with a positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of MAP's earnings growth over these next few years.

From the current net income level of €529m and the final forecast of €889m by 2022, the annual rate of growth for MAP’s earnings is 7.2%. EPS reaches €0.30 in the final year of forecast compared to the current €0.17 EPS today. In 2022, MAP's profit margin will have expanded from 2.5% to 3.7%.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For Mapfre, I've compiled three pertinent factors you should further research:

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