The most recent earnings update Motor Oil (Hellas) Corinth Refineries S.A.’s (ATH:MOH) released in December 2018 suggested that the business faced a immense headwind with earnings falling by -18%. Investors may find it useful to understand how market analysts perceive Motor Oil (Hellas) Corinth Refineries’s earnings growth outlook over the next couple of years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.
Market analysts’ consensus outlook for this coming year seems rather muted, with earnings expanding by a single digit 9.5%. The growth outlook in the following year seems much more buoyant with rates arriving at double digit 45% compared to today’s earnings and falls to €299m by 2022.
Even though it is informative knowing the growth each year relative to today’s level, it may be more insightful to evaluate the rate at which the business is rising or falling every year, on average. The benefit of this method is that it removes the impact of near term flucuations and accounts for the overarching direction of Motor Oil (Hellas) Corinth Refineries’s earnings trajectory over time, be more volatile. To compute this rate, I’ve appended a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 4.0%. This means that, we can presume Motor Oil (Hellas) Corinth Refineries will grow its earnings by 4.0% every year for the next few years.
For Motor Oil (Hellas) Corinth Refineries, I’ve put together three important 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 MOH 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 MOH is currently mispriced by the market.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of MOH? 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.