Since Leasinvest Real Estate SCA (EBR:LEAS) released its earnings in December 2018, analyst consensus outlook seem bearish, as a 3.2% fall in profits is expected in the upcoming year relative to the past 5-year average growth rate of 11%. With trailing-twelve-month net income at current levels of €38m, the consensus growth rate suggests that earnings will decline to €37m by 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
Can we expect Leasinvest Real Estate to keep growing?
The 1 analysts covering LEAS view its longer term outlook with a positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. 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 LEAS’s earnings growth over these next few years.
From the current net income level of €38m and the final forecast of €40m by 2022, the annual rate of growth for LEAS’s earnings is 1.9%. This leads to an EPS of €11.32 in the final year of projections relative to the current EPS of €7.37. As revenues is expected to outpace earnings, analysts expect margins to contract from the current 71% to 59% by the end of 2022.
Future outlook is only one aspect when you’re building an investment case for a stock. For Leasinvest Real Estate, I’ve compiled three pertinent factors 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.
- Future Earnings: How does Leasinvest Real Estate’s growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Leasinvest Real Estate? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
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