Since Assicurazioni Generali SpA (BIT:G) released its earnings in June 2018, it seems that analyst expectations are fairly bearish, as a 7.0% rise in profits is expected in the upcoming year, against the higher past 5-year average growth rate of 18%. With trailing-twelve-month net income at current levels of €2.3b, we should see this rise to €2.5b in 2019. Below is a brief commentary on the longer term outlook the market has for Assicurazioni Generali. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
Check out our latest analysis for Assicurazioni Generali
How will Assicurazioni Generali perform in the near future?
Longer term expectations from the 15 analysts covering G’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. To reduce the year-on-year volatility of analyst earnings forecast, I’ve inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.
This results in an annual growth rate of 0.8% based on the most recent earnings level of €2.3b to the final forecast of €2.5b by 2021. This leads to an EPS of €1.63 in the final year of projections relative to the current EPS of €1.49. In 2021, G’s profit margin will have expanded from 2.7% to 3.4%.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Assicurazioni Generali, I’ve compiled three relevant factors 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 Assicurazioni Generali 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 Assicurazioni Generali is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Assicurazioni Generali? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.