The latest earnings announcement Kojamo Oyj (HEL:KOJAMO) released in December 2018 confirmed that the business gained from a slight tailwind, eventuating to a single-digit earnings growth of 4.2%. Below is a brief commentary on my key takeaways on how market analysts predict Kojamo Oyj’s earnings growth trajectory over the next couple of 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.
Market analysts’ consensus outlook for the coming year seems positive, with earnings climbing by a robust 17%. This growth seems to continue into the following year with rates reaching double digit 22% compared to today’s earnings and falls to €241m by 2022.
Even though it’s informative knowing the rate of growth each year relative to today’s value, it may be more insightful to estimate the rate at which the earnings are rising or falling every year, on average. The pro of this approach is that we can get a bigger picture of the direction of Kojamo Oyj’s earnings trajectory over the long run, irrespective of near term fluctuations, fluctuate up and down. To calculate this rate, I put 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 2.8%. This means that, we can expect Kojamo Oyj will grow its earnings by 2.8% every year for the next few years.
For Kojamo Oyj, I’ve put together three important 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 KOJAMO 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 KOJAMO is currently mispriced by the market.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of KOJAMO? 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.
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