Looking at Motor Oil (Hellas) Corinth Refineries S.A.’s (ATH:MOH) earnings update on 31 December 2018, analyst forecasts seem fairly subdued, with earnings expected to grow by 9.3% in the upcoming year against the higher past 5-year average growth rate of 45%. With trailing-twelve-month net income at current levels of €257m, we should see this rise to €281m in 2020. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for Motor Oil (Hellas) Corinth Refineries in the longer term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
What can we expect from Motor Oil (Hellas) Corinth Refineries in the longer term?
The longer term view from the 10 analysts covering MOH 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 MOH’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 €257m and the final forecast of €299m by 2022, the annual rate of growth for MOH’s earnings is 4.2%. EPS reaches €2.68 in the final year of forecast compared to the current €2.32 EPS today. With a current profit margin of 2.7%, this movement will result in a margin of 3.3% by 2022.
Future outlook is only one aspect when you’re building an investment case for a stock. For Motor Oil (Hellas) Corinth Refineries, there are three essential aspects you should further examine:
- 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 Motor Oil (Hellas) Corinth Refineries 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 Motor Oil (Hellas) Corinth Refineries is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Motor Oil (Hellas) Corinth Refineries? 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.