Bertrandt Aktiengesellschaft (FRA:BDT): What Are The Future Prospects?
Since Bertrandt Aktiengesellschaft (FRA:BDT) released its earnings in March 2018, analysts seem cautiously optimistic, as a 33.55% increase in profits is expected in the upcoming year, against the past 5-year average growth rate of 1.23%. Currently with trailing-twelve-month earnings of €43.11m, we can expect this to reach €57.57m by 2019. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for Bertrandt in the longer term. For those interested in more of an analysis of the company, you can research its fundamentals here.
Check out our latest analysis for Bertrandt
Can we expect Bertrandt to keep growing?
The longer term expectations from the 8 analysts of BDT is tilted towards the positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To understand the overall trajectory of BDT’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.
By 2021, BDT’s earnings should reach €65.75m, from current levels of €43.87m, resulting in an annual growth rate of 8.61%. EPS reaches €7.1 in the final year of forecast compared to the current €4.35 EPS today. Earnings growth appears to be a result of cost cutting activities, as revenues is expected to grow much slower than earnings. With a current profit margin of 4.41%, this movement will result in a margin of 5.81% by 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Bertrandt, I’ve compiled three pertinent factors you should further research:
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 Bertrandt 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 Bertrandt is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Bertrandt? 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.
