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Muehlhan AG's (ETR:M4N) released its most recent earnings update in December 2018, which confirmed that the company experienced a robust tailwind, eventuating to a double-digit earnings growth of 21%. Below, I've laid out key numbers on how market analysts view Muehlhan's earnings growth outlook over the next few 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.

View our latest analysis for Muehlhan

Market analysts' consensus outlook for the coming year seems rather subdued, with earnings growing by a single digit 5.9%. The growth outlook in the following year seems much more optimistic with rates reaching double digit 12% compared to today’s earnings and declines to €5.5m by 2022.

Even though it is informative understanding the rate of growth each year relative to today’s level, it may be more valuable to estimate the rate at which the earnings are rising or falling on average every year. The advantage of this technique is that it ignores near term flucuations and accounts for the overarching direction of Muehlhan's earnings trajectory over time, fluctuate up and down. To compute this rate, I've appended a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 3.3%. This means, we can anticipate Muehlhan will grow its earnings by 3.3% every year for the next couple of years.

Next Steps:

For Muehlhan, I've put together three relevant factors 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 M4N 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 M4N is currently mispriced by the market.

3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of M4N? 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.