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Beiersdorf Aktiengesellschaft (ETR:BEI): Is It A Good Long Term Opportunity?

Beiersdorf Aktiengesellschaft’s (ETR:BEI) latest earnings update in December 2017 indicated that the business faced a minor headwind with earnings deteriorating from €709.00m to €672.00m, a change of -5.22%. Below, I’ve laid out key numbers on how market analysts view Beiersdorf’s earnings growth outlook over the next couple of years and whether the future looks brighter. 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. Check out our latest analysis for Beiersdorf

Analysts’ outlook for next year seems positive, with earnings expanding by a robust 15.44%. This growth seems to continue into the following year with rates arriving at double digit 25.10% compared to today’s earnings, and finally hitting €912.82m by 2021.

XTRA:BEI Future Profit June 22nd 18
XTRA:BEI Future Profit June 22nd 18

Although it is helpful to understand the rate of growth year by year relative to today’s figure, it may be more beneficial evaluating the rate at which the company is moving every year, on average. The pro of this method is that we can get a better picture of the direction of Beiersdorf’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To compute this rate, I’ve inserted 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 8.88%. This means, we can presume Beiersdorf will grow its earnings by 8.88% every year for the next couple of years.

Next Steps:

For Beiersdorf, I’ve put together three key factors you should further examine:

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  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 BEI 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 BEI is currently mispriced by the market.

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