How Do Analysts See AIXTRON SE (FRA:AIXA) Performing Over The Next Few Years?

The latest earnings announcement AIXTRON SE’s (DB:AIXA) released in December 2017 indicated that the business finally turned profitable after negative earnings on average over the past few years. Investors may find it useful to understand how market analysts perceive AIXTRON’s earnings growth trajectory over the next couple of years and whether the future looks brighter. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings. Check out our latest analysis for AIXTRON

Analysts’ expectations for the coming year seems positive, with earnings growth more than doubling. Earnings continue to grow strongly in the next couple of years, finally reaching €44.94M in 2021.

DB:AIXA Future Profit Apr 20th 18
DB:AIXA Future Profit Apr 20th 18

Even though it’s useful to be aware of the growth rate year by year relative to today’s level, it may be more valuable to gauge the rate at which the earnings are growing on average every year. The pro of this technique is that we can get a bigger picture of the direction of AIXTRON’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate this rate, I’ve inserted 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 33.48%. This means, we can anticipate AIXTRON will grow its earnings by 33.48% every year for the next couple of years.

Next Steps:

For AIXTRON, I’ve put together three important 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 AIXA 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 AIXA is currently mispriced by the market.
  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of AIXA? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!