Yahoo Finance What Should Investors Know About Kering SA's (EPA:KER) Future?
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Since Kering SA (EPA:KER) released its earnings in December 2018, it seems that analyst forecasts are fairly optimistic, as upcoming earnings growth is expected to be 25% next year, similar to the range of average earnings growth for the past five years of 25% per year. Presently, with latest-twelve-month earnings at €2.6b, we should see this growing to €3.3b by 2020. Below is a brief commentary around Kering's earnings outlook going forward, which may give you a sense of market sentiment for the company. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
See our latest analysis for Kering
How will Kering perform in the near future?
The view from 23 analysts over the next three years is one of 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 KER'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.
By 2022, KER's earnings should reach €4.0b, from current levels of €2.6b, resulting in an annual growth rate of 14%. This leads to an EPS of €31.77 in the final year of projections relative to the current EPS of €20.8. With a current profit margin of 19%, this movement will result in a margin of 22% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Kering, I've compiled three relevant factors you should look at:
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 Kering 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 Kering is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Kering? 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.
