What Should You Know About ING Bank Slaski S.A.’s (WSE:ING) Future?

The most recent earnings release ING Bank Slaski S.A.’s (WSE:ING) announced in December 2018 indicated that the business experienced a small tailwind, eventuating to a single-digit earnings growth of 8.8%. Below, I’ve laid out key numbers on how market analysts perceive ING Bank Slaski’s earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.

Check out our latest analysis for ING Bank Slaski

Analysts’ outlook for this coming year seems rather subdued, with earnings rising by a single digit 8.3%. The growth outlook in the following year seems much more positive with rates generating double digit 20% compared to today’s earnings, and finally hitting zł2.0b by 2022.

WSE:ING Past and Future Earnings, February 28th 2019
WSE:ING Past and Future Earnings, February 28th 2019

Although it’s helpful to understand the growth rate year by year relative to today’s value, it may be more valuable to evaluate the rate at which the company is growing every year, on average. The pro of this technique is that we can get a bigger picture of the direction of ING Bank Slaski’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate this rate, I’ve appended a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 9.5%. This means that, we can anticipate ING Bank Slaski will grow its earnings by 9.5% every year for the next few years.

Next Steps:

For ING Bank Slaski, I’ve put together three fundamental aspects you should further research:

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