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In December 2018, Klassik Radio AG (ETR:KA8) released its earnings update. Generally, analyst consensus outlook appear cautiously optimistic, with earnings expected to grow by 38% in the upcoming year against the past 5-year average growth rate of 32%. Presently, with latest-twelve-month earnings at €1.6m, we should see this growing to €2.2m by 2020. Below is a brief commentary around Klassik Radio'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.
How is Klassik Radio going to perform in the near future?
The longer term view from the 1 analysts covering KA8 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 understand the overall trajectory of KA8'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 €1.6m and the final forecast of €3.0m by 2022, the annual rate of growth for KA8’s earnings is 16%. EPS reaches €0.62 in the final year of forecast compared to the current €0.33 EPS today. With a current profit margin of 10%, this movement will result in a margin of 14% by 2022.
Future outlook is only one aspect when you're building an investment case for a stock. For Klassik Radio, I've put together three pertinent aspects you should further examine:
- 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 Klassik Radio 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 Klassik Radio is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Klassik Radio? 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 email@example.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.