Yahoo Finance DO & CO Aktiengesellschaft (VIE:DOC): What Are The Future Prospects?
The latest earnings update DO & CO Aktiengesellschaft (VIE:DOC) released in June 2019 suggested that the business benefited from a small tailwind, leading to a single-digit earnings growth of 8.3%. Below, I've laid out key growth figures on how market analysts view DO & CO'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.
Check out our latest analysis for DO & CO
Analysts' expectations for this coming year seems positive, with earnings growing by a robust 22%. This growth seems to continue into the following year with rates arriving at double digit 97% compared to today’s earnings, and finally hitting €55m by 2022.
While it’s useful to be aware of the rate of growth each year relative to today’s value, it may be more insightful to analyze the rate at which the business is growing on average every year. The advantage of this method is that we can get a better picture of the direction of DO & CO's earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate this rate, I've appended a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 23%. This means that, we can expect DO & CO will grow its earnings by 23% every year for the next couple of years.
Next Steps:
For DO & CO, there are three key factors you should look at:
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 DOC 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 DOC is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of DOC? 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.
