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As Komax Holding AG (VTX:KOMN) announced its recent earnings release on 31 December 2018, analyst forecasts seem bearish, as a -4.2% fall in profits is expected in the upcoming year relative to the past 5-year average growth rate of 6.0%. Presently, with latest-twelve-month earnings at CHF52m, we should see this fall to CHF50m by 2020. Below is a brief commentary on the longer term outlook the market has for Komax Holding. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
View our latest analysis for Komax Holding
What can we expect from Komax Holding in the longer term?
The longer term view from the 8 analysts covering KOMN is one of positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.
From the current net income level of CHF52m and the final forecast of CHF63m by 2022, the annual rate of growth for KOMN’s earnings is 6.8%. EPS reaches CHF16.46 in the final year of forecast compared to the current CHF13.52 EPS today. In 2022, KOMN's profit margin will have expanded from 11% to 12%.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Komax Holding, there are three relevant 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 Komax 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 Komax 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 Komax 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.