As Proximus PLC (EBR:PROX) announced its earnings release on 31 March 2019, it seems that analyst forecasts are fairly optimistic, with profits predicted to increase by 3.1% next year compared with the past 5-year average growth rate of -4.8%. Currently with trailing-twelve-month earnings of €508m, we can expect this to reach €524m 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.
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
How is Proximus going to perform in the near future?
The longer term view from the 18 analysts covering PROX is one of positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To understand the overall trajectory of PROX’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.
From the current net income level of €508m and the final forecast of €570m by 2022, the annual rate of growth for PROX’s earnings is 4.4%. This leads to an EPS of €1.74 in the final year of projections relative to the current EPS of €1.57. Margins are currently sitting at 8.8%, which is expected to expand to 9.9% by 2022.
Future outlook is only one aspect when you’re building an investment case for a stock. For Proximus, I’ve compiled three key aspects 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 Proximus 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 Proximus is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Proximus? 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 email@example.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.