In This Article:
The most recent earnings announcement SFS Group AG’s (SWX:SFSN) released in December 2017 revealed that the business gained from a strong tailwind, leading to a double-digit earnings growth of 27.69%. Below, I’ve presented key growth figures on how market analysts view SFS Group’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 SFS Group
Analysts’ expectations for the coming year seems positive, with earnings climbing by a robust 24.61%. This growth seems to continue into the following year with rates reaching double digit 35.99% compared to today’s earnings, and finally hitting CHF226.77M by 2021.
Even though it is useful to be aware of the rate of growth each year relative to today’s value, it may be more beneficial gauging the rate at which the earnings are rising or falling every year, on average. The pro of this method is that it ignores near term flucuations and accounts for the overarching direction of SFS Group’s earnings trajectory over time, which may be more relevant for long term investors. To compute this rate, I’ve appended 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 12.26%. This means, we can anticipate SFS Group will grow its earnings by 12.26% every year for the next couple of years.
Next Steps:
For SFS Group, I’ve put together three pertinent factors you should further examine:
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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.
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Valuation: What is SFSN 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 SFSN is currently mispriced by the market.
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Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of SFSN? 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.