Hamburger Hafen und Logistik Aktiengesellschaft (FRA:HHFA): Earnings Growth Remains Elusive

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Since Hamburger Hafen und Logistik Aktiengesellschaft (FRA:HHFA) released its earnings in March 2019, analyst consensus outlook appear pessimistic, with earnings expected to decline by 10% in the upcoming year against the past 5-year average growth rate of 14%. With trailing-twelve-month net income at current levels of €112m, the consensus growth rate suggests that earnings will decline to €101m by 2020. Below is a brief commentary around Hamburger Hafen und Logistik’s earnings outlook going forward, which may give you a sense of market sentiment for the company. Investors wanting to learn more about other aspects of the company should research its fundamentals here.

View our latest analysis for Hamburger Hafen und Logistik

How is Hamburger Hafen und Logistik going to perform in the near future?

The 8 analysts covering HHFA view its longer term outlook with a 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:HHFA Past and Future Earnings, July 15th 2019
DB:HHFA Past and Future Earnings, July 15th 2019

From the current net income level of €112m and the final forecast of €117m by 2022, the annual rate of growth for HHFA’s earnings is 7.2%. This leads to an EPS of €1.77 in the final year of projections relative to the current EPS of €1.54. With a current profit margin of 8.7%, this movement will result in a margin of 8.7% by 2022.

Next Steps:

Future outlook is only one aspect when you’re building an investment case for a stock. For Hamburger Hafen und Logistik, I’ve compiled three important aspects you should further examine:

  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 Hamburger Hafen und Logistik 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 Hamburger Hafen und Logistik is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Hamburger Hafen und Logistik? 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.