What Should You Know About Talanx Aktiengesellschaft’s (ETR:TLX) Future?

Talanx Aktiengesellschaft’s (ETR:TLX) released its most recent earnings update in December 2018, which signalled that the business gained from a small tailwind, eventuating to a single-digit earnings growth of 4.8%. Below, I’ve laid out key growth figures on how market analysts perceive Talanx’s earnings growth outlook over the next few 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.

View our latest analysis for Talanx

Market analysts’ prospects for the coming year seems positive, with earnings climbing by a robust 34%. This growth seems to continue into the following year with rates reaching double digit 45% compared to today’s earnings, and finally hitting €1.1b by 2022.

XTRA:TLX Past and Future Earnings, April 15th 2019
XTRA:TLX Past and Future Earnings, April 15th 2019

While it is informative understanding the rate of growth each year relative to today’s level, it may be more beneficial to analyze the rate at which the company is growing every year, on average. The pro of this technique is that it ignores near term flucuations and accounts for the overarching direction of Talanx’s earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I’ve inserted a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 13%. This means, we can anticipate Talanx will grow its earnings by 13% every year for the next couple of years.

Next Steps:

For Talanx, I’ve compiled three important factors 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 TLX 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 TLX is currently mispriced by the market.
  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of TLX? 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.