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On 31 December 2018, CR Capital Real Estate AG (ETR:CRZK) released its earnings update. Generally, the consensus outlook from analysts appear somewhat bearish, as a 15% rise in profits is expected in the upcoming year, relative to the higher past 5-year average growth rate of 30%. With trailing-twelve-month net income at current levels of €7.8m, we should see this rise to €9.0m in 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for CR Capital Real Estate in the longer term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
View our latest analysis for CR Capital Real Estate
What can we expect from CR Capital Real Estate in the longer term?
Over the next three years, it seems the consensus view of the 2 analysts covering CRZK is skewed towards the positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To understand the overall trajectory of CRZK's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
From the current net income level of €7.8m and the final forecast of €12m by 2022, the annual rate of growth for CRZK’s earnings is 14%. This leads to an EPS of €6.2 in the final year of projections relative to the current EPS of €4.15. However, the expansion of the current 30% margin is not expected to be sustained, as it begins to contract to 24% by the end of 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For CR Capital Real Estate, I've put together three important aspects you should look at:
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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.
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Valuation: What is CR Capital Real Estate 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 CR Capital Real Estate is currently mispriced by the market.
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Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of CR Capital Real Estate? 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.