First Financial Northwest Inc (NASDAQ:FFNW) is expected to deliver a solid 31.35% in earnings growth per share over the next three years. With the recent EPS being $0.913, expected growth will push the upcoming EPS to $1.199. To assess the reasonability of FFNW’s earnings growth per share, we should look at its most recent growth rate delivered. View our latest analysis for First Financial Northwest
How is FFNW going to perform in the future?
FFNW is covered by 3 analysts who by consensus are expecting earnings to increase from today’s level of $0.913 to $1.199 over the next couple of years. This illustrates a relatively optimistic outlook in the near term, with a relatively solid earnings per share growth rate of 31.35% over the next few years. During the same time and profits (net income) are predicted to escalate from $10M to $13M in the next couple of years, roughly staying around the same level. Though, at the current levels of revenue and profit, margins are certainly underwhelming.
Is the growth built on solid basis?
The past can be a great indicator for future performance for a stock. We can determine whether this level of expected growth is highly excessive or whether the company has consistently exhibited strength. FFNW’s earnings growth the past couple of years was 36.37% which indicates that the company’s past performance is supportive of a strong continuation. This means FFNW has already proven its capacity to grow at a strong rate, which should give investors higher conviction of analysts’ consensus prediction for the company’s future growth going forward.
For FFNW, there are three relevant aspects you should look at:
1. 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.
2. Valuation: What is FFNW 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 FFNW is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of FFNW? 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.