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The latest earnings announcement Vonovia SE’s (XTRA:VNA) released in December 2017 revealed that the company benefited from a slight tailwind, eventuating to a single-digit earnings growth of 4.78%. Below, I’ve laid out key growth figures on how market analysts predict Vonovia’s earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings. View our latest analysis for Vonovia
Market analysts’ prospects for next year seems pessimistic, with earnings decreasing by -9.15%. Beyond this, earnings are predicted to continue to be below today’s level, with a reduction of -26.21% in 2020, eventually reaching €1.78B in 2021.
While it’s helpful to understand the growth year by year relative to today’s value, it may be more valuable to evaluate the rate at which the earnings are growing every year, on average. The advantage of this approach is that we can get a bigger picture of the direction of Vonovia’s earnings trajectory over the long run, irrespective of near term fluctuations, fluctuate up and down. To calculate this rate, I’ve appended a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is -12.75%. This means that, we can assume Vonovia will chip away at a rate of -12.75% every year for the next few years.
Next Steps:
For Vonovia, I’ve put together three essential factors 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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Future Earnings: How does VNA’s growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.
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Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of VNA? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.