After Shaver Shop Group Limited's (ASX:SSG) earnings announcement on 30 June 2019, it seems that analyst forecasts are fairly optimistic, with profits predicted to increase by 15% next year relative to the past 5-year average growth rate of 0.3%. Presently, with latest-twelve-month earnings at AU$6.7m, we should see this growing to AU$7.6m by 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Shaver Shop Group in the longer term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
Can we expect Shaver Shop Group to keep growing?
The 2 analysts covering SSG view its longer term outlook with a positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.
By 2022, SSG's earnings should reach AU$10m, from current levels of AU$6.7m, resulting in an annual growth rate of 15%. EPS reaches A$0.083 in the final year of forecast compared to the current A$0.055 EPS today. Margins are currently sitting at 4.0%, which is expected to expand to 5.1% by 2022.
Future outlook is only one aspect when you're building an investment case for a stock. For Shaver Shop Group, I've put together three fundamental aspects 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.
- Valuation: What is Shaver Shop Group 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 Shaver Shop Group is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Shaver Shop 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.