【i stopped wearing my retainer】Siemens Healthineers AG (ETR:SHL): What Can We Expect From This High Growth Stock?

Siemens Healthineers AG’s (

ETR:SHL

) announced its latest earnings update in September 2018,i stopped wearing my retainer which confirmed that the company faced a minor headwind with earnings declining from €1.4b to €1.3b, a change of -8.3%. Below, I’ve laid out key growth figures on how market analysts view Siemens Healthineers’s earnings growth trajectory over the next couple of years and whether the future looks brighter. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.

See our latest analysis for Siemens Healthineers

Market analysts’ prospects for next year seems buoyant, with earnings rising by a robust 27%. This growth seems to continue into the following year with rates reaching double digit 42% compared to today’s earnings, and finally hitting €1.9b by 2022.

XTRA:SHL Future Profit January 3rd 19

Even though it’s helpful to be aware of the growth each year relative to today’s figure, it may be more beneficial to analyze the rate at which the earnings are rising or falling on average every year. The advantage of this technique is that we can get a better picture of the direction of Siemens Healthineers’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. 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 11%. This means that, we can anticipate Siemens Healthineers will grow its earnings by 11% every year for the next few years.

Next Steps:

For Siemens Healthineers, I’ve put together three key factors you should look at:

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 SHL 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 SHL is currently mispriced by the market.

Other High-Growth Alternatives

: Are there other high-growth stocks you could be holding instead of SHL? Explore

our interactive list of stocks with large growth potential

to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at

[email protected]

.

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