Want to participate in a short research study? Help shape the future of investing tools and receive a $20 prize!
Based on Konecranes Plc’s (HEL:KCR) earnings update on 31 December 2018, analyst consensus outlook appear vastly optimistic, as a 75% rise in profits is expected in the upcoming year, compared with the historical 5-year average growth rate of 21%. Currently with trailing-twelve-month earnings of €102m, we can expect this to reach €178m by 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
Exciting times ahead?
Longer term expectations from the 11 analysts covering KCR’s stock 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 understand the overall trajectory of KCR’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.
By 2022, KCR’s earnings should reach €243m, from current levels of €102m, resulting in an annual growth rate of 22%. This leads to an EPS of €3.1 in the final year of projections relative to the current EPS of €1.29. In 2022, KCR’s profit margin will have expanded from 3.2% to 6.8%.
Future outlook is only one aspect when you’re building an investment case for a stock. For Konecranes, I’ve compiled three relevant aspects you should look at:
- 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.
- Valuation: What is Konecranes 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 Konecranes is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Konecranes? 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 firstname.lastname@example.org. 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. On rare occasion, data errors may occur. Thank you for reading.