Ready for long term success? – Simply Wall St News

Looking at the update of Banco Santander SA (BME: SAN) results in March 2018,
analysts seem cautiously optimistic,
with profits expected to increase by 28.15% next year
against
the average growth rate of the last five years of 8.11%.
Currently, with a twelve month profit of 6.37 billion euros, we should see this figure reach 8.16 billion euros by 2019.
In this article, I've outlined some earnings growth rates to give you an idea of ​​the market sentiment for Banco Santander in the longer term.
Readers who are interested in understanding the company beyond these numbers should
look for its fundamentals here.

See our latest analysis for Banco Santander

How will Banco Santander play in the near future?

The perspective of 20 analysts over the next three years is one of the
positive
feeling.
Broker analysts tend to predict up to three years in advance due to a lack of clarity on the company's trajectory beyond.
To understand the overall trajectory of SAN's earnings growth over the next few years, I adjusted analysts' earnings forecasts to determine an annual growth rate from the slope.

By 2021, the profit of SAN is expected to reach 9.67 billion euros, against 6.22 billion euros, an annual growth rate of 9.73%.
EPS reached € 0.59 in the last year of forecasts compared to the
€ 0.40 EPS today.
The growth of the bottom line seems to be caused by
cost-cutting activities, as revenues are expected to grow much more slowly than profits.
Margins is currently sitting at 15.80%, which is expected to reach 18.54% by 2021.

Next Steps:

Prospects for the future are just one aspect when you are preparing an investment brief for an action. For Banco Santander,
there is
Three
important
factors
you should
further research:

1. Financial health : Does he have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple controls on key factors such as leverage and risk.
2. Rating : What is Banco Santander worth today? Is the stock undervalued, even if its growth prospects are taken into account in its intrinsic value? The infographic of intrinsic value in our free research report helps to visualize whether Banco Santander is currently misjudged by the market.
3. Other high-growth alternatives : Are there any other high growth stocks than Banco Santander? Explore our interactive list of stocks with high growth potential to get an idea of ​​what else you can miss!

To help readers understand the short-term volatility of the financial market, we aim to provide you with a long-term vision. term-oriented research analysis purely focused on fundamental data. Note that our analysis does not take into account the latest price sensitive business announcements.

The author is an independent contributor and at the time of publication had no position in the actions mentioned. For errors that deserve to be corrected, please contact the editor at [email protected]