Yahoo Finance What Do Analysts Think About Safran SA's (EPA:SAF) Future?
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After Safran SA's (EPA:SAF) earnings announcement in December 2018, analysts seem highly optimistic, as a 81% rise in profits is expected in the upcoming year, against the previous 5-year average growth rate of 30%. Currently with trailing-twelve-month earnings of €1.3b, we can expect this to reach €2.3b by 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
See our latest analysis for Safran
How will Safran perform in the near future?
The 20 analysts covering SAF view its longer term outlook with a positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To understand the overall trajectory of SAF'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.
From the current net income level of €1.3b and the final forecast of €3.0b by 2022, the annual rate of growth for SAF’s earnings is 18%. This leads to an EPS of €7.14 in the final year of projections relative to the current EPS of €2.98. In 2022, SAF's profit margin will have expanded from 6.1% to 12%.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Safran, I've compiled three essential 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 Safran 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 Safran is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Safran? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
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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.
