In This Article:
Looking at KONE Oyj's (HEL:KNEBV) earnings update on 30 June 2019, analysts seem fairly confident, with profits predicted to increase by 16% next year compared with the past 5-year average growth rate of 2.0%. Presently, with latest-twelve-month earnings at €841m, we should see this growing to €975m by 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for KONE Oyj in the longer term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
Check out our latest analysis for KONE Oyj
Exciting times ahead?
The view from 23 analysts over the next three years is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To understand the overall trajectory of KNEBV'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.
This results in an annual growth rate of 8.7% based on the most recent earnings level of €841m to the final forecast of €1.1b by 2022. This leads to an EPS of €2.23 in the final year of projections relative to the current EPS of €1.63. In 2022, KNEBV's profit margin will have expanded from 9.3% to 11%.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For KONE Oyj, I've compiled three fundamental factors you should look at:
-
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 KONE Oyj 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 KONE Oyj is currently mispriced by the market.
-
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of KONE Oyj? 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.