How Do Analysts See Associated British Foods plc (LSE:ABF) Performing In The Year Ahead?

Associated British Foods plc (LSE:ABF)’s sound earnings growth per share is expected to be a double-digit 11.86% over the next three years. Presently, with an EPS of £1.516, we can expect an upcoming EPS of £1.696. To assess the reasonability of ABF’s earnings growth per share, we should look at its most recent growth rate delivered. See our latest analysis for ABF

How is ABF going to perform in the future?

ABF is covered by 18 analysts who by consensus are expecting earnings to increase from today’s level of £1.516 to £1.696 over the next couple of years. This indicates a relatively solid earnings per share growth rate of 11.86% over the next few years, which is an optimistic outlook in the near term. In the same period revenue is predicted to grow from £15,357M to £18,335M and net income is predicted to slightly grow from £1,198M to £1,340M in the next couple of years, growing by 11.86%. Margins are expected to be rather acceptable at 7.25%.

Is the growth built on solid basis?

The past can be an insightful indicator for future performance for a stock. We can determine whether this level of expected growth exhibits a continuation of this level or if the company is expected to face some further headwinds. ABF delivered a high double-digit growth rate in the past year, compared to the less exciting rate expected this year. This may indicate a more sustainable level of growth as the company comes off a high-growth period. On the other hand, a more pessimistic outlook questions the company’s ability to continue as a high performer.

Next Steps:

For ABF, I’ve compiled three fundamental aspects you should look at:

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 ABF 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 ABF is currently mispriced by the market.

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