Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
After Derichebourg’s (EPA:DBG) earnings announcement in September 2018, analyst forecasts seem fairly subdued, as a 6.5% rise in profits is expected in the upcoming year, against the higher past 5-year average growth rate of 53%. By 2020, we can expect Derichebourg’s bottom line to reach €72m, a jump from the current trailing-twelve-month of €68m. Below is a brief commentary on the longer term outlook the market has for Derichebourg. For those interested in more of an analysis of the company, you can research its fundamentals here.
How will Derichebourg perform in the near future?
The view from 4 analysts over the next three years is one of positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. 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.
This results in an annual growth rate of 8.6% based on the most recent earnings level of €68m to the final forecast of €91m by 2022. This leads to an EPS of €0.54 in the final year of projections relative to the current EPS of €0.41. With a current profit margin of 2.3%, this movement will result in a margin of 3.1% by 2022.
Future outlook is only one aspect when you’re building an investment case for a stock. For Derichebourg, there are three important aspects you should further research:
- 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 Derichebourg 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 Derichebourg is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Derichebourg? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.
Warren Buffett’s Portfolio: What is he holding?
Get insight into the mind of the most renowned value investor on the planet. Take a look at the portfolio’s top holdings, past performance, how he diversifies his investments, growth estimates and explore investment ideas based on Buffet’s investing methodology. Click here to view a FREE infographic analysis of Warren Buffett’s investment portfolio.