In March 2019, Austevoll Seafood ASA (OB:AUSS) released its earnings update. Generally, the consensus outlook from analysts appear somewhat bearish, as a 17% rise in profits is expected in the upcoming year, against the higher past 5-year average growth rate of 25%. Currently with trailing-twelve-month earnings of kr2.3b, we can expect this to reach kr2.7b by 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. For those interested in more of an analysis of the company, you can research its fundamentals here.
What can we expect from Austevoll Seafood in the longer term?
Over the next three years, it seems the consensus view of the 6 analysts covering AUSS is skewed 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 understand the overall trajectory of AUSS's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
This results in an annual growth rate of 11% based on the most recent earnings level of kr2.3b to the final forecast of kr3.3b by 2022. This leads to an EPS of NOK13.08 in the final year of projections relative to the current EPS of NOK11.39. In 2022, AUSS's profit margin will have expanded from 10% to 13%.
Future outlook is only one aspect when you're building an investment case for a stock. For Austevoll Seafood, there are three essential aspects 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 Austevoll Seafood 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 Austevoll Seafood is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Austevoll Seafood? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
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