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Looking at Calida Holding AG’s (VTX:CALN) earnings update in December 2018, analyst consensus outlook seem pessimistic, with profits predicted to drop by 4.2% next year compared with the past 5-year average growth rate of 0.6%. Presently, with latest-twelve-month earnings at CHF16m, we should see this fall to CHF16m by 2020. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for Calida Holding in the longer term. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
Exciting times ahead?
The longer term view from the 2 analysts covering CALN 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.
This results in an annual growth rate of 3.3% based on the most recent earnings level of CHF16m to the final forecast of CHF17m by 2022. This leads to an EPS of CHF2.07 in the final year of projections relative to the current EPS of CHF1.97. With a current profit margin of 4.0%, this movement will result in a margin of 4.0% by 2022.
Future outlook is only one aspect when you’re building an investment case for a stock. For Calida Holding, I’ve compiled three key aspects you should further examine:
- 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 Calida 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 Calida Holding is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Calida 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.