What Do Analysts Think About The Future Of Orion Oyj’s (HEL:ORNBV)?

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Looking at Orion Oyj’s (HEL:ORNBV) earnings update in March 2019, it seems that analyst forecasts are fairly optimistic, as a 5.4% increase in profits is expected in the upcoming year, against the past 5-year average growth rate of -1.0%. Presently, with latest-twelve-month earnings at €197m, we should see this growing to €208m by 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. For those interested in more of an analysis of the company, you can research its fundamentals here.

View our latest analysis for Orion Oyj

How will Orion Oyj perform in the near future?

The longer term view from the 7 analysts covering ORNBV 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 ORNBV, 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.

HLSE:ORNBV Past and Future Earnings, July 3rd 2019
HLSE:ORNBV Past and Future Earnings, July 3rd 2019

By 2022, ORNBV’s earnings should reach €226m, from current levels of €197m, resulting in an annual growth rate of 6.0%. This leads to an EPS of €1.5 in the final year of projections relative to the current EPS of €1.4. In 2022, ORNBV’s profit margin will have expanded from 20% to 21%.

Next Steps:

Future outlook is only one aspect when you’re building an investment case for a stock. For Orion Oyj, there are three fundamental factors you should look at:

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