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In December 2018, ALSO Holding AG (VTX:ALSN) announced its earnings update. Overall, analysts seem fairly confident, as a 21% increase in profits is expected in the upcoming year, compared with the past 5-year average growth rate of 12%. Presently, with latest-twelve-month earnings at €81m, we should see this growing to €98m by 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for ALSO Holding in the longer term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
See our latest analysis for ALSO Holding
How will ALSO Holding perform in the near future?
The 4 analysts covering ALSN view its longer term outlook with a positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. 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 ALSN's earnings growth over these next few years.
From the current net income level of €81m and the final forecast of €122m by 2022, the annual rate of growth for ALSN’s earnings is 14%. EPS reaches €9.57 in the final year of forecast compared to the current €6.33 EPS today. Margins are currently sitting at 0.9%, which is expected to expand to 1.2% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For ALSO Holding, I've compiled three important factors 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 ALSO Holding 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 ALSO Holding 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 ALSO Holding? 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.