Will Vaisala Oyj’s (HEL:VAIAS) Earnings Grow In The Next 12 Months?

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In March 2019, Vaisala Oyj (HEL:VAIAS) announced its earnings update. Overall, analyst forecasts seem fairly subdued, as a 0.7% rise in profits is expected in the upcoming year, relative to the higher past 5-year average growth rate of 15%. By 2020, we can expect Vaisala Oyj’s bottom line to reach €30m, a jump from the current trailing-twelve-month of €30m. Below is a brief commentary on the longer term outlook the market has for Vaisala Oyj. For those interested in more of an analysis of the company, you can research its fundamentals here.

See our latest analysis for Vaisala Oyj

How is Vaisala Oyj going to perform in the near future?

The 3 analysts covering VAIAS 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. To understand the overall trajectory of VAIAS’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.

HLSE:VAIAS Past and Future Earnings, June 3rd 2019
HLSE:VAIAS Past and Future Earnings, June 3rd 2019

This results in an annual growth rate of 11% based on the most recent earnings level of €30m to the final forecast of €39m by 2022. This leads to an EPS of €0.95 in the final year of projections relative to the current EPS of €0.82. In 2022, VAIAS’s profit margin will have expanded from 8.5% to 9.4%.

Next Steps:

Future outlook is only one aspect when you’re building an investment case for a stock. For Vaisala Oyj, I’ve compiled three relevant aspects 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 Vaisala 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 Vaisala Oyj is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Vaisala 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.