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How Do Analysts See Compagnie Lebon (EPA:LBON) Performing In The Years Ahead?

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The most recent earnings announcement Compagnie Lebon's (EPA:LBON) released in April 2019 signalled that the business faced a immense headwind with earnings falling by -77%. Today I want to provide a brief commentary on how market analysts perceive Compagnie Lebon's earnings growth outlook over the next few years and whether the future looks brighter. 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.

Check out our latest analysis for Compagnie Lebon

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Market analysts' prospects for this coming year seems positive, with earnings expanding by a robust 12%. This growth seems to continue into the following year with rates arriving at double digit 57% compared to today’s earnings, and finally hitting €7.5m by 2022.

ENXTPA:LBON Past and Future Earnings, July 19th 2019
ENXTPA:LBON Past and Future Earnings, July 19th 2019

Even though it is useful to understand the growth rate each year relative to today’s level, it may be more insightful to gauge the rate at which the business is growing on average every year. The advantage of this approach is that we can get a better picture of the direction of Compagnie Lebon'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 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 19%. This means, we can anticipate Compagnie Lebon will grow its earnings by 19% every year for the next few years.

Next Steps:

For Compagnie Lebon, I've compiled three key 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 LBON 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 LBON is currently mispriced by the market.

  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of LBON? 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.