What Should You Know About The Future Of Signature Bank’s (NASDAQ:SBNY)?
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On 31 December 2018, Signature Bank (NASDAQ:SBNY) released its earnings update. Generally, analyst consensus outlook appear cautiously optimistic, with profits predicted to increase by 23% next year relative to the past 5-year average growth rate of 11%. By 2020, we can expect Signature Bank’s bottom line to reach US$620m, a jump from the current trailing-twelve-month of US$505m. Below is a brief commentary on the longer term outlook the market has for Signature Bank. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
Check out our latest analysis for Signature Bank
What can we expect from Signature Bank in the longer term?
The view from 17 analysts over the next three years 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. To get an idea of the overall earnings growth trend for SBNY, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
From the current net income level of US$505m and the final forecast of US$715m by 2022, the annual rate of growth for SBNY’s earnings is 12%. This leads to an EPS of $13.49 in the final year of projections relative to the current EPS of $9.29. Margins are currently sitting at 44%, approximately the same as previous years. With analysts forecasting revenue growth of 0.40876 and SBNY’s net income growth expected to roughly track that, this company may add value for shareholders over time.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Signature Bank, I’ve compiled three fundamental factors 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 Signature Bank 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 Signature Bank is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Signature Bank? 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 past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
