Yahoo Finance What Are Analysts Saying About Siemens Healthineers AG's (ETR:SHL) Future?
Looking at Siemens Healthineers AG's (ETR:SHL) earnings update in March 2019, analysts seem cautiously optimistic, with earnings expected to grow by 20% in the upcoming year relative to the past 5-year average growth rate of 0.8%. With trailing-twelve-month net income at current levels of €1.3b, we should see this rise to €1.5b in 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
View our latest analysis for Siemens Healthineers
How will Siemens Healthineers perform in the near future?
Longer term expectations from the 18 analysts covering SHL’s stock is one of 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 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.
From the current net income level of €1.3b and the final forecast of €1.8b by 2022, the annual rate of growth for SHL’s earnings is 10%. This leads to an EPS of €1.98 in the final year of projections relative to the current EPS of €1.27. In 2022, SHL's profit margin will have expanded from 9.4% to 12%.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Siemens Healthineers, I've compiled three pertinent aspects 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 Siemens Healthineers 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 Siemens Healthineers is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Siemens Healthineers? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
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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.
