What Should You Know About Terna – Rete Elettrica Nazionale Società per Azioni’s (BIT:TRN) Future?

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Since Terna – Rete Elettrica Nazionale Società per Azioni (BIT:TRN) released its earnings in September 2018, the consensus outlook from analysts appear somewhat bearish, with profits predicted to rise by 4.0% next year against the higher past 5-year average growth rate of 7.1%. With trailing-twelve-month net income at current levels of €688m, we should see this rise to €716m in 2020. Below is a brief commentary around Terna – Rete Elettrica Nazionale Società per Azioni’s earnings outlook going forward, which may give you a sense of market sentiment for the company. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.

See our latest analysis for Terna – Rete Elettrica Nazionale Società per Azioni

Can we expect Terna – Rete Elettrica Nazionale Società per Azioni to keep growing?

Over the next three years, it seems the consensus view of the 19 analysts covering TRN is skewed towards the positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To get an idea of the overall earnings growth trend for TRN, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.

BIT:TRN Future Profit February 15th 19
BIT:TRN Future Profit February 15th 19

This results in an annual growth rate of 3.7% based on the most recent earnings level of €688m to the final forecast of €769m by 2022. EPS reaches €0.39 in the final year of forecast compared to the current €0.34 EPS today. Margins are currently sitting at 31%, which is expected to expand to 32% by 2022.

Next Steps:

Future outlook is only one aspect when you’re building an investment case for a stock. For Terna – Rete Elettrica Nazionale Società per Azioni, I’ve put together three key factors you should further examine:

  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 Terna – Rete Elettrica Nazionale Società per Azioni 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 Terna – Rete Elettrica Nazionale Società per Azioni is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Terna – Rete Elettrica Nazionale Società per Azioni? 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.