Yahoo Finance What Are Analysts Saying About The Future Of Koenig & Bauer AG’s (FRA:SKB)?
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Based on Koenig & Bauer AG’s (FRA:SKB) earnings update in September 2018, analyst forecasts seem fairly subdued, as a 3.2% rise in profits is expected in the upcoming year, compared with the higher past 5-year average growth rate of 67%. Presently, with latest-twelve-month earnings at €81m, we should see this growing to €84m by 2020. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for Koenig & Bauer in the longer term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
Check out our latest analysis for Koenig & Bauer
How will Koenig & Bauer perform in the near future?
The 7 analysts covering SKB view its longer term outlook with a 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 get an idea of the overall earnings growth trend for SKB, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
From the current net income level of €81m and the final forecast of €95m by 2022, the annual rate of growth for SKB’s earnings is 4.4%. This leads to an EPS of €5.07 in the final year of projections relative to the current EPS of €4.91. Analysts are predicting this high revenue growth to squeeze profit margins over time, from 6.7% to 6.4% by the end of 2022.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Koenig & Bauer, there are three pertinent aspects you should further examine:
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.
Valuation: What is Koenig & Bauer 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 Koenig & Bauer is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Koenig & Bauer? 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 past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
