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The latest earnings update Tsakos Energy Navigation Limited (NYSE:TNP) released in December 2018 indicated company earnings became less negative compared to the previous year's level as a result of recent tailwinds Below, I've laid out key growth figures on how market analysts view Tsakos Energy Navigation's earnings growth trajectory over the next few years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.
Market analysts' consensus outlook for this coming year seems buoyant, with earnings becoming less negative, reaching -US$57.1m in 2020. However, earnings are predicted to fall off in the following year, before bouncing back up again to -US$58.3m in 2022.
Even though it’s informative understanding the rate of growth year by year relative to today’s value, it may be more insightful determining the rate at which the earnings are moving on average every year. The benefit of this approach is that it removes the impact of near term flucuations and accounts for the overarching direction of Tsakos Energy Navigation's earnings trajectory over time, be more volatile. To calculate 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 49%. This means, we can expect Tsakos Energy Navigation will grow its earnings by 49% every year for the next couple of years.
For Tsakos Energy Navigation, I've compiled three fundamental factors you should further examine:
- 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 TNP 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 TNP is currently mispriced by the market.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of TNP? 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.