The latest earnings release Self Storage Group ASA’s (OB:SSG) announced in December 2017 revealed that the company benefited from a strong tailwind, eventuating to a high double-digit earnings growth of 80.44%. Below, I’ve laid out key numbers on how market analysts predict Self Storage Group’s earnings growth outlook over the next few years and whether the future looks even brighter than the past. 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. See our latest analysis for Self Storage Group
Market analysts’ prospects for this coming year seems pessimistic, with earnings reducing by a double-digit -23.22%. In the next couple of years, earnings are expected to continue to be below today’s level, with a decline of -13.05% in 2020, eventually reaching ØRE45.23M in 2021.
While it is informative knowing the growth each year relative to today’s level, it may be more valuable gauging the rate at which the company is growing every year, on average. The advantage of this method is that we can get a bigger picture of the direction of Self Storage Group’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate 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 2.35%. This means, we can assume Self Storage Group will grow its earnings by 2.35% every year for the next few years.
For Self Storage Group, 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 SSG 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 SSG is currently mispriced by the market.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of SSG? 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.