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After Hornbach Holding AG & Co. KGaA's (FRA:HBH) earnings announcement in February 2019, analysts seem cautiously optimistic, with earnings expected to grow by 13% in the upcoming year relative to the past 5-year average growth rate of -2.8%. By 2020, we can expect Hornbach Holding KGaA’s bottom line to reach €74m, a jump from the current trailing-twelve-month of €65m. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Hornbach Holding KGaA in the longer term. For those interested in more of an analysis of the company, you can research its fundamentals here.
View our latest analysis for Hornbach Holding KGaA
What can we expect from Hornbach Holding KGaA in the longer term?
Longer term expectations from the 4 analysts covering HBH’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. To get an idea of the overall earnings growth trend for HBH, 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, HBH's earnings should reach €86m, from current levels of €65m, resulting in an annual growth rate of 10.0%. EPS reaches €5.4 in the final year of forecast compared to the current €4.08 EPS today. In 2022, HBH's profit margin will have expanded from 1.5% to 1.8%.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Hornbach Holding KGaA, I've put together three relevant 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 Hornbach Holding KGaA 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 Hornbach Holding KGaA 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 Hornbach Holding KGaA? 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.