Looking at ASR Nederland N.V.’s (AMS:ASRNL) earnings update in December 2018, analyst forecasts seem fairly subdued, with profits predicted to rise by 6.8% next year against the higher past 5-year average growth rate of 20%. With trailing-twelve-month net income at current levels of €646m, we should see this rise to €690m in 2020. Below is a brief commentary around ASR Nederland’s earnings outlook going forward, which may give you a sense of market sentiment for the company. For those interested in more of an analysis of the company, you can research its fundamentals here.
Exciting times ahead?
The longer term expectations from the 7 analysts of ASRNL is tilted towards the positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To get an idea of the overall earnings growth trend for ASRNL, 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.
By 2022, ASRNL’s earnings should reach €730m, from current levels of €646m, resulting in an annual growth rate of 4.2%. EPS reaches €5.13 in the final year of forecast compared to the current €4.58 EPS today. With a current profit margin of 11%, this movement will result in a margin of 15% by 2022.
Future outlook is only one aspect when you’re building an investment case for a stock. For ASR Nederland, I’ve put together three relevant 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 ASR Nederland 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 ASR Nederland is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of ASR Nederland? 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.