How Do Analysts See Bechtle AG (ETR:BC8) Performing Over The Next Year?
In March 2018, Bechtle AG (ETR:BC8) announced its earnings update. Overall, the consensus outlook from analysts appear fairly confident, with profits predicted to increase by 16.64% next year relative to the past 5-year average growth rate of 12.80%. By 2019, we can expect Bechtle’s bottom line to reach €136.84m, a jump from the current trailing-twelve-month €117.31m. Below is a brief commentary around Bechtle’s earnings outlook going forward, which may give you a sense of market sentiment for the company. For those interested in more of an analysis of the company, you can research its fundamentals here.
Check out our latest analysis for Bechtle
How is Bechtle going to perform in the near future?
The view from 8 analysts over the next three years is one of positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To understand the overall trajectory of BC8’s earnings growth over these next fews years, I’ve fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
From the current net income level of €114.56m and the final forecast of €170.98m by 2021, the annual rate of growth for BC8’s earnings is 12.17%. This leads to an EPS of €4.22 in the final year of projections relative to the current EPS of €2.73. The primary reason for earnings growth is due to cost-cutting initiatives, since top-line is predicted to rise at a slower pace than earnings. With a current profit margin of 3.21%, this movement will result in a margin of 3.65% by 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Bechtle, I’ve compiled three relevant aspects you should look at:
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.
Valuation: What is Bechtle 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 Bechtle is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Bechtle? 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.
