In This Article:
The latest earnings update Sabaf Sp.A.’s (BIT:SAB) released in December 2017 suggested that the business experienced a strong tailwind, leading to a high double-digit earnings growth of 64.94%. Below, I’ve laid out key growth figures on how market analysts view Sabaf’s earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in. Check out our latest analysis for Sabaf
Market analysts’ prospects for the coming year seems pessimistic, with earnings declining by -5.63%. But in the following year, there is a complete contrast in performance, with earnings growth rates generating double digit 1.11% compared to today’s level before plateauing to €15.00M in 2021.
Although it’s helpful to understand the rate of growth each year relative to today’s value, it may be more valuable estimating the rate at which the company is rising or falling every year, on average. The advantage of this technique is that we can get a better picture of the direction of Sabaf’s earnings trajectory over the long run, irrespective of near term fluctuations, be more volatile. To calculate this rate, I put a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 1.02%. This means, we can anticipate Sabaf will grow its earnings by 1.02% every year for the next few years.
Next Steps:
For Sabaf, there are three relevant factors you should further research:
-
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 SAB 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 SAB is currently mispriced by the market.
-
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of SAB? 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 pass 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.