In This Article:
On 31 March 2019, Brenntag AG (ETR:BNR) announced its earnings update. Overall, it seems that analyst forecasts are fairly in-line with its track record, as upcoming earnings growth is expected to be 3.7% next year, similar to the range of average earnings growth for the past five years of 4.1% per year. With trailing-twelve-month net income at current levels of €461m, we should see this rise to €478m in 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Brenntag in the longer term. For those interested in more of an analysis of the company, you can research its fundamentals here.
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Exciting times ahead?
The longer term expectations from the 18 analysts of BNR is tilted towards the positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of BNR's earnings growth over these next few years.
From the current net income level of €461m and the final forecast of €547m by 2022, the annual rate of growth for BNR’s earnings is 6.1%. EPS reaches €3.54 in the final year of forecast compared to the current €2.98 EPS today. In 2022, BNR's profit margin will have expanded from 3.7% to 3.9%.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Brenntag, I've compiled three pertinent aspects you should further research:
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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 Brenntag 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 Brenntag 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 Brenntag? 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.