What Do Analysts Think About The Future Of Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft’s (FRA:MUV2)?

Based on Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft’s (FRA:MUV2) earnings update on 30 September 2018, analysts seem cautiously optimistic, with profits predicted to increase by 2.8% next year compared with the past 5-year average growth rate of -20%. With trailing-twelve-month net income at current levels of €375m, we should see this rise to €386m in 2019. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for Münchener Rückversicherungs-Gesellschaft in the longer term. For those keen to understand more about other aspects of the company, you can research its fundamentals here.

See our latest analysis for Münchener Rückversicherungs-Gesellschaft

Can we expect Münchener Rückversicherungs-Gesellschaft to keep growing?

Longer term expectations from the 20 analysts covering MUV2’s stock is one of positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. 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 MUV2’s earnings growth over these next few years.

DB:MUV2 Future Profit December 2nd 18

By 2021, MUV2’s earnings should reach €419m, from current levels of €375m, resulting in an annual growth rate of 4.5%. EPS reaches €21.29 in the final year of forecast compared to the current €2.43 EPS today. In 2021, MUV2’s profit margin will have expanded from 0.7% to 0.8%.

Next Steps:

Future outlook is only one aspect when you’re building an investment case for a stock. For Münchener Rückversicherungs-Gesellschaft, I’ve put together three pertinent aspects you should further research:

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 Münchener Rückversicherungs-Gesellschaft 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 Münchener Rückversicherungs-Gesellschaft is currently mispriced by the market.

3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Münchener Rückversicherungs-Gesellschaft? 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.