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Georg Fischer AG (VTX:FI-N): Set To Experience A Decrease In Earnings?

Simply Wall St

Looking at Georg Fischer AG's (VTX:FI-N) earnings update in December 2018, it seems that analyst forecasts are fairly pessimistic, with earnings expected to decline by 3.8% in the upcoming year against the past 5-year average growth rate of 14%. Presently, with latest-twelve-month earnings at CHF281m, we should see this fall to CHF270m by 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Georg Fischer in the longer term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.

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See our latest analysis for Georg Fischer

Exciting times ahead?

The view from 7 analysts over the next three years is one of positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of FI-N's earnings growth over these next few years.

SWX:FI-N Past and Future Earnings, May 24th 2019

By 2022, FI-N's earnings should reach CHF303m, from current levels of CHF281m, resulting in an annual growth rate of 2.7%. EPS reaches CHF75.21 in the final year of forecast compared to the current CHF68.64 EPS today. Margins are currently sitting at 6.1%, which is expected to expand to 7.1% by 2022.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For Georg Fischer, I've put together three relevant aspects 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 Georg Fischer 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 Georg Fischer is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Georg Fischer? 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.