The latest earnings release Silgan Holdings Inc’s (NASDAQ:SLGN) announced in December 2017 showed that the business experienced a sizeable tailwind, leading to a high double-digit earnings growth of 75.84%. Below, I’ve presented key growth figures on how market analysts predict Silgan Holdings’s earnings growth outlook over the next few years and whether the future looks even brighter than the past. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings. Check out our latest analysis for Silgan Holdings
Market analysts’ consensus outlook for the coming year seems pessimistic, with earnings falling by a double-digit -15.00%. Over the medium term, earnings will begin to improve, expanding year on year, and arriving at US$256.45M by 2021.
Although it’s helpful to understand the growth rate each year relative to today’s value, it may be more insightful to evaluate the rate at which the earnings are moving on average every year. The pro of this method is that it ignores near term flucuations and accounts for the overarching direction of Silgan Holdings’s earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I’ve inserted a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is -2.20%. This means that, we can anticipate Silgan Holdings will chip away at a rate of -2.20% every year for the next couple of years.
For Silgan Holdings, I’ve put together three essential factors you should further examine:
- 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 SLGN 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 SLGN is currently mispriced by the market.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of SLGN? 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.