DEFAMA Deutsche Fachmarkt AG (ETR:DEF): Are Analysts Bullish?




  • In Business
  • 2019-05-16 07:05:18Z
  • By Simply Wall St.
 

In December 2018, DEFAMA Deutsche Fachmarkt AG (ETR:DEF) released its most recent earnings announcement, which indicated that the company benefited from a strong tailwind, leading to a double-digit earnings growth of 23%. Investors may find it useful to understand how market analysts perceive DEFAMA Deutsche Fachmarkt's earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

Check out our latest analysis for DEFAMA Deutsche Fachmarkt

Market analysts' prospects for this coming year seems buoyant, with earnings rising by a robust 38%. Earnings are predicted to peak in the following year, reaching €5.0m before reducing in 2022

Although it's informative understanding the growth each year relative to today's value, it may be more insightful analyzing the rate at which the company is growing on average every year. The benefit of this technique is that it removes the impact of near term flucuations and accounts for the overarching direction of DEFAMA Deutsche Fachmarkt's earnings trajectory over time, fluctuate up and down. To compute 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 25%. This means that, we can expect DEFAMA Deutsche Fachmarkt will grow its earnings by 25% every year for the next couple of years.

Next Steps:

For DEFAMA Deutsche Fachmarkt, I've compiled three relevant factors you should further research:

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.

COMMENTS

More Related News

NSE S.A.
NSE S.A.'s (EPA:ALNSE) Fundamentals Look Pretty Strong: Could The Market Be Wrong About The Stock?

It is hard to get excited after looking at NSE's (EPA:ALNSE) recent performance, when its stock has declined 12% over...

UniDevice AG
UniDevice AG's (ETR:UDC) Stock's On An Uptrend: Are Strong Financials Guiding The Market?

Most readers would already be aware that UniDevice's (ETR:UDC) stock increased significantly by 13% over the past...

Are Poor Financial Prospects Dragging Down Fondia Oyj (HEL:FONDIA Stock?
Are Poor Financial Prospects Dragging Down Fondia Oyj (HEL:FONDIA Stock?

It is hard to get excited after looking at Fondia Oyj's (HEL:FONDIA) recent performance, when its stock has declined...

Declining Stock and Decent Financials: Is The Market Wrong About Nebelhornbahn-Aktiengesellschaft (MUN:NHB)?
Declining Stock and Decent Financials: Is The Market Wrong About Nebelhornbahn-Aktiengesellschaft (MUN:NHB)?

With its stock down 14% over the past three months, it is easy to disregard Nebelhornbahn-Aktiengesellschaft...

Is Urstadt Biddle Properties Inc.
Is Urstadt Biddle Properties Inc.'s (NYSE:UBA) Stock On A Downtrend As A Result Of Its Poor Financials?

With its stock down 37% over the past three months, it is easy to disregard Urstadt Biddle Properties (NYSE:UBA). To...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business