In December 2017, SafeCharge International Group Limited (LON:SCH) announced its most recent earnings update, which suggested that the business faced a significant headwind with earnings falling by -10.33%. Below, I’ve laid out key numbers on how market analysts view SafeCharge International Group’s earnings growth trajectory over the next couple of years and whether the future looks brighter. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings. View out our latest analysis for SafeCharge International Group
Analysts’ outlook for the upcoming year seems buoyant, with earnings growing by a robust 12.13%. This growth seems to continue into the following year with rates reaching double digit 28.30% compared to today’s earnings, and finally hitting UK£35.89m by 2021.
While it is informative knowing the rate of growth year by year relative to today’s level, it may be more insightful to evaluate the rate at which the business is moving on average every year. The advantage of this method is that it removes the impact of near term flucuations and accounts for the overarching direction of SafeCharge International Group’s earnings trajectory over time, which may be more relevant for long term investors. To compute 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 13.49%. This means, we can presume SafeCharge International Group will grow its earnings by 13.49% every year for the next few years.
For SafeCharge International Group, I’ve compiled three essential 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 SCH 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 SCH is currently mispriced by the market.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of SCH? 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.