In March 2019, CEWE Stiftung & Co. KGaA ( ETR:CWC ) released its earnings update. Generally, analyst forecasts seem fairly subdued, with earnings expected to grow by 2.9% in the upcoming year against the higher past 5-year average growth rate of 9.7%. By 2020, we can expect CEWE Stiftung KGaA’s bottom line to reach €37m, a jump from the current trailing-twelve-month of €36m. I will provide a brief commentary around the figures and analyst expectations in the near term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here .
How is CEWE Stiftung KGaA going to perform in the near future?
The longer term view from the 7 analysts covering CWC is one of positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.
From the current net income level of €36m and the final forecast of €43m by 2022, the annual rate of growth for CWC’s earnings is 6.3%. This leads to an EPS of €6.16 in the final year of projections relative to the current EPS of €5.06. With a current profit margin of 5.5%, this movement will result in a margin of 5.8% by 2022.
Future outlook is only one aspect when you're building an investment case for a stock. For CEWE Stiftung KGaA, I've compiled three pertinent factors you should further examine:
- 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 CEWE Stiftung KGaA 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 CEWE Stiftung KGaA is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of CEWE Stiftung KGaA? 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 email@example.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.