CompuGroup Medical Societas Europaea (FRA:COP): What Does The Future Look Like?

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After CompuGroup Medical Societas Europaea’s (FRA:COP) recent earnings announcement in March 2019, the consensus outlook from analysts appear bearish, as a 2.9% fall in profits is expected in the upcoming year compared with the past 5-year average growth rate of 23%. Presently, with latest-twelve-month earnings at €92m, we should see this fall to €90m by 2020. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for CompuGroup Medical Societas Europaea in the longer term. For those interested in more of an analysis of the company, you can research its fundamentals here.

See our latest analysis for CompuGroup Medical Societas Europaea

What can we expect from CompuGroup Medical Societas Europaea in the longer term?

The view from 8 analysts over the next three years is one of positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly 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.

DB:COP Past and Future Earnings, July 17th 2019
DB:COP Past and Future Earnings, July 17th 2019

By 2022, COP’s earnings should reach €100m, from current levels of €92m, resulting in an annual growth rate of 6.6%. EPS reaches €2.19 in the final year of forecast compared to the current €1.88 EPS today. With a current profit margin of 13%, this movement will result in a margin of 13% by 2022.

Next Steps:

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