Will CompuGroup Medical Societas Europaea's (FRA:COP) Earnings Grow In The Year Ahead?
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In December 2018, CompuGroup Medical Societas Europaea (FRA:COP) released its earnings update. Generally, analyst consensus outlook appear cautiously subdued, with earnings expected to grow by 7.2% in the upcoming year against the higher past 5-year average growth rate of 19%. Presently, with latest-twelve-month earnings at €86m, we should see this growing to €92m by 2020. Below is a brief commentary around CompuGroup Medical Societas Europaea's earnings outlook going forward, which may give you a sense of market sentiment for the company. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
Check out our latest analysis for CompuGroup Medical Societas Europaea
What can we expect from CompuGroup Medical Societas Europaea in the longer term?
The longer term view from the 8 analysts covering COP is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.
By 2022, COP's earnings should reach €108m, from current levels of €86m, resulting in an annual growth rate of 7.7%. EPS reaches €2.18 in the final year of forecast compared to the current €1.74 EPS today. With a current profit margin of 12%, this movement will result in a margin of 15% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For CompuGroup Medical Societas Europaea, there are three key aspects 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 CompuGroup Medical Societas Europaea 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 CompuGroup Medical Societas Europaea is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of CompuGroup Medical Societas Europaea? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
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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.
