What Are Analysts Saying About The Future Of Seaspan Corporation’s (NYSE:SSW)?
The latest earnings announcement Seaspan Corporation’s (NYSE:SSW) released in December 2017 showed that the business turned profitable again after incurring negative earnings in the last financial year. Below, I’ve laid out key growth figures on how market analysts predict Seaspan’s earnings growth outlook over the next couple of years and whether the future looks brighter. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings. Check out our latest analysis for Seaspan
Market analysts’ prospects for the upcoming year seems optimistic, with earnings rising by a significant 60.23%. This high growth in earnings is expected to continue, bringing the bottom line up to US$305.33M by 2021.
Even though it is helpful to be aware of the growth rate year by year relative to today’s value, it may be more valuable gauging the rate at which the company is moving every year, on average. The advantage of this approach is that we can get a better picture of the direction of Seaspan’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 28.75%. This means that, we can expect Seaspan will grow its earnings by 28.75% every year for the next few years.
Next Steps:
For Seaspan, I’ve put together three pertinent 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 SSW 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 SSW is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of SSW? 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.
