What Should You Know About Publicis Groupe S.A.'s (EPA:PUB) Growth?

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Looking at Publicis Groupe S.A.'s (EPA:PUB) earnings update in December 2018, analysts seem cautiously optimistic, with earnings expected to grow by 15% in the upcoming year compared with the past 5-year average growth rate of -8.9%. Presently, with latest-twelve-month earnings at €919m, we should see this growing to €1.1b by 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Publicis Groupe in the longer term. For those interested in more of an analysis of the company, you can research its fundamentals here.

Check out our latest analysis for Publicis Groupe

How will Publicis Groupe perform in the near future?

Longer term expectations from the 16 analysts covering PUB’s stock 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. 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 PUB's earnings growth over these next few years.

This results in an annual growth rate of 9.8% based on the most recent earnings level of €919m to the final forecast of €1.3b by 2022. EPS reaches €5.44 in the final year of forecast compared to the current €4.01 EPS today. In 2022, PUB's profit margin will have expanded from 10% to 12%.

Next Steps:

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