Looking at Lerøy Seafood Group ASA's (OB:LSG) earnings update in March 2019, analysts seem fairly confident, with earnings growth rate expected to be 23% in the upcoming year, relative to the past five-year average earnings growth of 23% per year. By 2020, we can expect Lerøy Seafood Group’s bottom line to reach kr4.2b, a jump from the current trailing-twelve-month of kr3.4b. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Lerøy Seafood Group in the longer term. For those interested in more of an analysis of the company, you can research its fundamentals here.
How will Lerøy Seafood Group perform in the near future?
The longer term view from the 6 analysts covering LSG is one of positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of LSG's earnings growth over these next few years.
From the current net income level of kr3.4b and the final forecast of kr5.3b by 2022, the annual rate of growth for LSG’s earnings is 12%. EPS reaches NOK6.32 in the final year of forecast compared to the current NOK5.77 EPS today. Margins are currently sitting at 17%, which is expected to expand to 23% by 2022.
Future outlook is only one aspect when you're building an investment case for a stock. For Lerøy Seafood Group, I've put together three fundamental aspects 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 Lerøy Seafood Group 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 Lerøy Seafood Group is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Lerøy Seafood Group? 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 email@example.com. 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.