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After Tornos Holding AG's (VTX:TOHN) earnings announcement in December 2018, analyst consensus outlook appear cautiously subdued, with profits predicted to rise by 10% next year relative to the higher past 5-year average growth rate of 84%. By 2020, we can expect Tornos Holding’s bottom line to reach CHF17m, a jump from the current trailing-twelve-month of CHF15m. Below is a brief commentary on the longer term outlook the market has for Tornos Holding. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
Check out our latest analysis for Tornos Holding
What can we expect from Tornos Holding in the longer term?
Longer term expectations from the 2 analysts covering TOHN’s stock is one of positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. 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 TOHN's earnings growth over these next few years.
This results in an annual growth rate of 0.3% based on the most recent earnings level of CHF15m to the final forecast of CHF15m by 2022. EPS reaches CHF0.86 in the final year of forecast compared to the current CHF0.79 EPS today. This high rate of growth of revenue squeezes margins, as analysts predict an upcoming margin contraction from the current 7.1% to 6.5% by the end of 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Tornos Holding, there are three relevant aspects you should further examine:
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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 Tornos Holding 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 Tornos Holding 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 Tornos Holding? 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.