Looking at KION GROUP AG's (ETR:KGX) earnings update in December 2018, it seems that analyst expectations are fairly bearish, with profits predicted to rise by 15% next year relative to the higher past 5-year average growth rate of 25%. By 2020, we can expect KION GROUP’s bottom line to reach €460m, a jump from the current trailing-twelve-month of €400m. I will provide a brief commentary around the figures and analyst expectations in the near term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
What can we expect from KION GROUP in the longer term?
Longer term expectations from the 17 analysts covering KGX’s stock is one of positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To get an idea of the overall earnings growth trend for KGX, 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, KGX's earnings should reach €546m, from current levels of €400m, resulting in an annual growth rate of 10%. EPS reaches €4.63 in the final year of forecast compared to the current €3.39 EPS today. In 2022, KGX's profit margin will have expanded from 5.0% to 6.0%.
Future outlook is only one aspect when you're building an investment case for a stock. For KION GROUP, I've compiled three important 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 KION GROUP 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 KION GROUP is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of KION GROUP? 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.