In This Article:
In June 2018, Masterflex SE (ETR:MZX) released its earnings update. Generally, the consensus outlook from analysts appear somewhat bearish, with earnings expected to grow by 1.3% in the upcoming year compared with the higher past 5-year average growth rate of 4.9%. Currently with trailing-twelve-month earnings of €5m, we can expect this to reach €5m by 2019. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for Masterflex in the longer term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
View our latest analysis for Masterflex
Can we expect Masterflex to keep growing?
Over the next three years, it seems the consensus view of the 2 analysts covering MZX is skewed towards the positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To get an idea of the overall earnings growth trend for MZX, 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 2021, MZX’s earnings should reach €6m, from current levels of €4m, resulting in an annual growth rate of 16%. EPS reaches €0.66 in the final year of forecast compared to the current €0.46 EPS today. Growth in earnings appears to be a result of cost cutting activities, as revenues is expected to grow much slower than earnings. In 2021, MZX’s profit margin will have expanded from 5.8% to 6.8%.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Masterflex, there are three relevant aspects you should further research:
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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 Masterflex 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 Masterflex 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 Masterflex? 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.