What Should We Expect From KBC Group NV’s (EBR:KBC) Earnings Over The Next Few Years?
The most recent earnings announcement KBC Group NV’s (ENXTBR:KBC) released in December 2017 confirmed that the company benefited from a small tailwind, eventuating to a single-digit earnings growth of 6.23%. Below, I’ve laid out key growth figures on how market analysts perceive KBC Group’s earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings. See our latest analysis for KBC Group
Market analysts’ prospects for the upcoming year seems rather subdued, with earnings increasing by a single digit 0.021%. However, the following year seems to show a contrast, with earnings decreasing by -1.15%. This volatility continues into the final year of forecast, with earnings arriving at €2.56B.
Even though it is useful to be aware of the rate of growth year by year relative to today’s level, it may be more insightful analyzing the rate at which the earnings are rising or falling every year, on average. The benefit of this technique is that it ignores near term flucuations and accounts for the overarching direction of KBC Group’s earnings trajectory over time, fluctuate up and down. To compute this rate, I put 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 0.25%. This means, we can presume KBC Group will grow its earnings by 0.25% every year for the next few years.
Next Steps:
For KBC Group, I’ve put together three pertinent aspects you should further research:
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 KBC 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 KBC is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of KBC? 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 pass 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.
