Hamburger Hafen und Logistik Aktiengesellschaft (ETR:HHFA): Should The Future Outlook Worry You?

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After Hamburger Hafen und Logistik Aktiengesellschaft's (ETR:HHFA) recent earnings announcement in March 2019, analyst consensus outlook seem bearish, with earnings expected to decline by 10% in the upcoming year against the past 5-year average growth rate of 14%. Currently with a trailing-twelve-month profit of €112m, the consensus growth rate suggests that earnings will drop to €101m by 2020. Below is a brief commentary around Hamburger Hafen und Logistik's earnings outlook going forward, which may give you a sense of market sentiment for the company. Investors wanting to learn more about other aspects of the company should research its fundamentals here.

See our latest analysis for Hamburger Hafen und Logistik

Exciting times ahead?

Over the next three years, it seems the consensus view of the 8 analysts covering HHFA is skewed towards the positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To understand the overall trajectory of HHFA'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.

XTRA:HHFA Past and Future Earnings, August 13th 2019
XTRA:HHFA Past and Future Earnings, August 13th 2019

From the current net income level of €112m and the final forecast of €118m by 2022, the annual rate of growth for HHFA’s earnings is 7.2%. EPS reaches €1.77 in the final year of forecast compared to the current €1.54 EPS today. Margins are currently sitting at 8.7%, which is expected to expand to 8.7% by 2022.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For Hamburger Hafen und Logistik, I've put together three relevant 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 Hamburger Hafen und Logistik 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 Hamburger Hafen und Logistik is currently mispriced by the market.

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