The most recent earnings announcement MPC Münchmeyer Petersen Capital AG’s (XTRA:MPCK) released in December 2017 showed that the company benefited from a robust tailwind, leading to a double-digit earnings growth of 24.07%. Below, I’ve presented key growth figures on how market analysts perceive MPC Münchmeyer Petersen Capital’s earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings. See our latest analysis for MPC Münchmeyer Petersen Capital
Analysts’ expectations for this coming year seems buoyant, with earnings rising by a robust 14.56%. This growth seems to continue into the following year with rates arriving at double digit 43.26% compared to today’s earnings, and finally hitting €22.36M by 2021.
Even though it is informative knowing the growth rate each year relative to today’s figure, it may be more beneficial to determine the rate at which the business is moving every year, on average. The advantage of this approach is that it removes the impact of near term flucuations and accounts for the overarching direction of MPC Münchmeyer Petersen Capital’s earnings trajectory over time, which may be more relevant for long term investors. To compute this rate, I put a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 21.23%. This means that, we can assume MPC Münchmeyer Petersen Capital will grow its earnings by 21.23% every year for the next couple of years.
For MPC Münchmeyer Petersen Capital, I’ve compiled three fundamental 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 MPCK 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 MPCK is currently mispriced by the market.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of MPCK? 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 pass 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.