In February 2019, Chr. Hansen Holding A/S (CPH:CHR) announced its earnings update. Overall, it seems that analyst forecasts are fairly optimistic, with profits predicted to increase by 15% next year against the past 5-year average growth rate of 13%. Currently with trailing-twelve-month earnings of €228m, we can expect this to reach €262m by 2020. Below is a brief commentary around Chr. Hansen Holding's earnings outlook going forward, which may give you a sense of market sentiment for the company. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
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What can we expect from Chr. Hansen Holding in the longer term?
The 12 analysts covering CHR view its longer term outlook with a positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To get an idea of the overall earnings growth trend for CHR, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
By 2022, CHR's earnings should reach €325m, from current levels of €228m, resulting in an annual growth rate of 11%. EPS reaches €2.54 in the final year of forecast compared to the current €1.73 EPS today. With a current profit margin of 21%, this movement will result in a margin of 23% by 2022.
Future outlook is only one aspect when you're building an investment case for a stock. For Chr. Hansen Holding, I've put together three essential 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 Chr. Hansen 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 Chr. Hansen Holding is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Chr. Hansen 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 firstname.lastname@example.org. 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.