What Are Analysts Saying About Flughafen Zürich AG's (VTX:FHZN) Growth?

Looking at Flughafen Zürich AG's (VTX:FHZN) earnings update in December 2018, analyst consensus outlook appear cautiously optimistic, with earnings expected to grow by 25% in the upcoming year compared with the past 5-year average growth rate of 9.1%. By 2020, we can expect Flughafen Zürich’s bottom line to reach CHF297m, a jump from the current trailing-twelve-month of CHF238m. Below is a brief commentary on the longer term outlook the market has for Flughafen Zürich. For those keen to understand more about other aspects of the company, you can research its fundamentals here.

View our latest analysis for Flughafen Zürich

How is Flughafen Zürich going to perform in the near future?

Over the next three years, it seems the consensus view of the 13 analysts covering FHZN is skewed towards the positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To understand the overall trajectory of FHZN'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.

SWX:FHZN Past and Future Earnings, August 26th 2019
SWX:FHZN Past and Future Earnings, August 26th 2019

From the current net income level of CHF238m and the final forecast of CHF249m by 2022, the annual rate of growth for FHZN’s earnings is 0.8%. EPS reaches CHF7.9 in the final year of forecast compared to the current CHF7.75 EPS today. In 2022, FHZN's profit margin will have expanded from 21% to 22%.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For Flughafen Zürich, I've put together three essential 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 Flughafen Zürich 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 Flughafen Zürich is currently mispriced by the market.

  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Flughafen Zürich? 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.