Progress Werk Oberkirch AG (FRA:PWO): What Are The Future Prospects?

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Based on Progress Werk Oberkirch AG’s (FRA:PWO) earnings update in December 2018, analysts seem cautiously optimistic, with profits predicted to increase by 38% next year compared with the past 5-year average growth rate of -2.3%. By 2020, we can expect Progress Werk Oberkirch’s bottom line to reach €9.2m, a jump from the current trailing-twelve-month of €6.7m. Below is a brief commentary around Progress Werk Oberkirch’s earnings outlook going forward, which may give you a sense of market sentiment for the company. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.

View our latest analysis for Progress Werk Oberkirch

How will Progress Werk Oberkirch perform in the near future?

The view from 2 analysts over the next three years is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To understand the overall trajectory of PWO’s earnings growth over these next fews years, I’ve fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.

DB:PWO Past and Future Earnings, May 6th 2019
DB:PWO Past and Future Earnings, May 6th 2019

By 2022, PWO’s earnings should reach €13m, from current levels of €6.7m, resulting in an annual growth rate of 22%. This leads to an EPS of €4.05 in the final year of projections relative to the current EPS of €2.13. In 2022, PWO’s profit margin will have expanded from 1.4% to 2.4%.

Next Steps:

Future outlook is only one aspect when you’re building an investment case for a stock. For Progress Werk Oberkirch, I’ve compiled three relevant aspects you should look at:

  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 Progress Werk Oberkirch 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 Progress Werk Oberkirch is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Progress Werk Oberkirch? 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.