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On 30 June 2019, Coor Service Management Holding AB (STO:COOR) released its earnings update. Generally, analysts seem extremely confident, with earnings expected to grow by a high double-digit of 60% in the upcoming year, against the past 5-year average growth rate of 40%. With trailing-twelve-month net income at current levels of kr104m, we should see this rise to kr166m 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.
How is Coor Service Management Holding going to perform in the near future?
The longer term expectations from the 4 analysts of COOR is tilted towards the 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.
This results in an annual growth rate of 22% based on the most recent earnings level of kr104m to the final forecast of kr237m by 2022. EPS reaches SEK3.37 in the final year of forecast compared to the current SEK1.09 EPS today. With a current profit margin of 1.1%, this movement will result in a margin of 2.1% by 2022.
Future outlook is only one aspect when you're building an investment case for a stock. For Coor Service Management Holding, I've put together three key 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 Coor Service Management Holding 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 Coor Service Management Holding is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Coor Service Management Holding? 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 firstname.lastname@example.org. 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.