In This Article:
In December 2018, adesso AG (ETR:ADN1) announced its earnings update. Overall, analyst forecasts seem fairly subdued, with earnings expected to grow by 17% in the upcoming year relative to the higher past 5-year average growth rate of 34%. With trailing-twelve-month net income at current levels of €13m, we should see this rise to €16m in 2020. Below is a brief commentary on the longer term outlook the market has for adesso. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
View our latest analysis for adesso
How will adesso perform in the near future?
Longer term expectations from the 2 analysts covering ADN1’s stock 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. 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 ADN1's earnings growth over these next few years.
This results in an annual growth rate of 16% based on the most recent earnings level of €13m to the final forecast of €22m by 2022. This leads to an EPS of €3.54 in the final year of projections relative to the current EPS of €2.17. With a current profit margin of 3.6%, this movement will result in a margin of 4.4% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For adesso, I've compiled three pertinent aspects you should look at:
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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 adesso 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 adesso 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 adesso? 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.