How Do Analysts See Jungfraubahn Holding AG (VTX:JFN) Performing In The Year Ahead?
On 31 December 2018, Jungfraubahn Holding AG (VTX:JFN) announced its earnings update. Overall, analyst forecasts seem fairly subdued, with earnings expected to grow by 2.7% in the upcoming year compared with the higher past 5-year average growth rate of 9.0%. Currently with trailing-twelve-month earnings of CHF48m, we can expect this to reach CHF49m by 2020. Below is a brief commentary on the longer term outlook the market has for Jungfraubahn Holding. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
Check out our latest analysis for Jungfraubahn Holding
Exciting times ahead?
The longer term view from the 2 analysts covering JFN 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 get an idea of the overall earnings growth trend for JFN, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
From the current net income level of CHF48m and the final forecast of CHF52m by 2022, the annual rate of growth for JFN’s earnings is 2.5%. This leads to an EPS of CHF8.89 in the final year of projections relative to the current EPS of CHF8.22. Analysts are predicting this high revenue growth to squeeze profit margins over time, from 23% to 21% by the end of 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Jungfraubahn Holding, I've put together three fundamental factors you should further examine:
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 Jungfraubahn Holding 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 Jungfraubahn Holding is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Jungfraubahn Holding? 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.
