What Should You Know About The Future Of Bank Handlowy w Warszawie S.A.’s (WSE:BHW)?

Looking at Bank Handlowy w Warszawie S.A.’s (WSE:BHW) earnings update in September 2018, the consensus outlook from analysts appear fairly confident, with profits predicted to increase by 2.6% next year relative to the past 5-year average growth rate of -13%. By 2019, we can expect Bank Handlowy w Warszawie’s bottom line to reach zł550m, a jump from the current trailing-twelve-month zł536m. Below is a brief commentary around Bank Handlowy w Warszawie’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.

Check out our latest analysis for Bank Handlowy w Warszawie

What can we expect from Bank Handlowy w Warszawie in the longer term?

Over the next three years, it seems the consensus view of the 9 analysts covering BHW is skewed towards the positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. I’ve plotted out each year’s earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of BHW’s earnings growth over these next few years.

WSE:BHW Future Profit December 18th 18
WSE:BHW Future Profit December 18th 18

By 2021, BHW’s earnings should reach zł623m, from current levels of zł536m, resulting in an annual growth rate of 4.8%. This leads to an EPS of PLN5.76 in the final year of projections relative to the current EPS of PLN4.1. Margins are currently sitting at 27%, approximately the same as previous years. With analysts forecasting revenue growth of 0.1552 and BHW’s net income growth expected to roughly track that, this company may add value for shareholders over time.

Next Steps:

Future outlook is only one aspect when you’re building an investment case for a stock. For Bank Handlowy w Warszawie, there are 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 Bank Handlowy w Warszawie 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 Bank Handlowy w Warszawie is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Bank Handlowy w Warszawie? 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.