As Ingenico Group – GCS (EPA:ING) announced its earnings release on 31 December 2018, analysts seem fairly confident, with earnings expected to grow by 29% in the upcoming year against the past 5-year average growth rate of 7.5%. Presently, with latest-twelve-month earnings at €188m, we should see this growing to €243m by 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
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Exciting times ahead?
The 15 analysts covering ING view its longer term outlook with a positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To understand the overall trajectory of ING’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 €188m and the final forecast of €313m by 2022, the annual rate of growth for ING’s earnings is 16%. This leads to an EPS of €4.96 in the final year of projections relative to the current EPS of €3.05. With a current profit margin of 7.1%, this movement will result in a margin of 8.5% by 2022.
Future outlook is only one aspect when you’re building an investment case for a stock. For Ingenico Group – GCS, I’ve compiled three important aspects you should further research:
- 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 Ingenico Group – GCS 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 Ingenico Group – GCS is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Ingenico Group – GCS? 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 firstname.lastname@example.org. 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.