In This Article:
Since Delignit AG (ETR:DLX) released its earnings in December 2018, analysts seem cautiously optimistic, with profits predicted to increase by 15% next year compared with the past 5-year average growth rate of 12%. With trailing-twelve-month net income at current levels of €2.6m, we should see this rise to €3.0m in 2020. Below is a brief commentary on the longer term outlook the market has for Delignit. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
View our latest analysis for Delignit
Can we expect Delignit to keep growing?
The longer term expectations from the 2 analysts of DLX is tilted towards the 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 DLX, 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.
By 2022, DLX's earnings should reach €4.2m, from current levels of €2.6m, resulting in an annual growth rate of 17%. This leads to an EPS of €0.53 in the final year of projections relative to the current EPS of €0.31. Margins are currently sitting at 4.3%, which is expected to expand to 4.6% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Delignit, I've put together three fundamental aspects you should further examine:
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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 Delignit 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 Delignit 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 Delignit? 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.