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What Do Analysts Think About Klingelnberg AG's (VTX:KLIN) Long Term Outlook?

Simply Wall St

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Klingelnberg AG's (VTX:KLIN) most recent earnings announcement in July 2019 showed that the company benefited from a robust tailwind, leading to a double-digit earnings growth of 35%. Below, I've laid out key growth figures on how market analysts perceive Klingelnberg's earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.

View our latest analysis for Klingelnberg

Market analysts' prospects for this coming year seems pessimistic, with earnings reducing by a double-digit -24%. However, the next few years seem to illustrate a completely different picture, with expected earnings growth rates arriving at double digit 14% compared to today’s level and continues to increase.

SWX:KLIN Past and Future Earnings, July 18th 2019

While it is useful to be aware of the growth year by year relative to today’s level, it may be more insightful to determine the rate at which the company is growing every year, on average. The advantage of this technique is that it ignores near term flucuations and accounts for the overarching direction of Klingelnberg's earnings trajectory over time, which may be more relevant for long term investors. To compute this rate, I've appended a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 13%. This means that, we can anticipate Klingelnberg will grow its earnings by 13% every year for the next couple of years.

Next Steps:

For Klingelnberg, I've put together three important factors you should further research:

  1. 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.
  2. Valuation: What is KLIN 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 KLIN is currently mispriced by the market.
  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of KLIN? 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.