ING Bank Slaski S.A. (WSE:ING): Poised For Long Term Success?

Since ING Bank Slaski S.A. (WSE:ING) released its earnings in September 2018, analysts seem cautiously optimistic, with earnings expected to grow by 11% in the upcoming year compared with the past 5-year average growth rate of 8.9%. Currently with trailing-twelve-month earnings of zł1.4b, we can expect this to reach zł1.6b by 2019. I will provide a brief commentary around the figures and analyst expectations in the near term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.

Check out our latest analysis for ING Bank Slaski

Exciting times ahead?

The longer term view from the 6 analysts covering ING 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 understand the overall trajectory of ING’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.

WSE:ING Future Profit December 21st 18
WSE:ING Future Profit December 21st 18

By 2021, ING’s earnings should reach zł1.9b, from current levels of zł1.4b, resulting in an annual growth rate of 9.1%. EPS reaches PLN14.94 in the final year of forecast compared to the current PLN10.78 EPS today. Analysts are predicting this high revenue growth to squeeze profit margins over time, from 32% to 31% by the end of 2021.

Next Steps:

Future outlook is only one aspect when you’re building an investment case for a stock. For ING Bank Slaski, I’ve compiled three relevant aspects you should look at:

  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 ING Bank Slaski 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 ING Bank Slaski is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of ING Bank Slaski? 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.