On 30 June 2019, Self Storage Group ASA (OB:SSG) announced its latest earnings update. Overall, analyst consensus outlook appear pessimistic, with earnings expected to decline by 4.4% in the upcoming year against the past 5-year average growth rate of 37%. With trailing-twelve-month net income at current levels of kr79m, the consensus growth rate suggests that earnings will decline to kr76m by 2020. Below is a brief commentary around Self Storage Group's earnings outlook going forward, which may give you a sense of market sentiment for the company. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
What can we expect from Self Storage Group in the longer term?
The 2 analysts covering SSG view its longer term outlook with a 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 SSG'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.
By 2022, SSG's earnings should reach kr117m, from current levels of kr79m, resulting in an annual growth rate of 18%. This leads to an EPS of NOK1.45 in the final year of projections relative to the current EPS of NOK1.22. However, the expansion of the current 33% margin is not expected to be sustained, as it begins to contract to 31% by the end of 2022.
Future outlook is only one aspect when you're building an investment case for a stock. For Self Storage Group, I've put together three important 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.
- Future Earnings: How does Self Storage Group's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Self Storage 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.