Since Aurskog Sparebank (OB:AURG) released its earnings in December 2018, analyst consensus outlook appear cautiously optimistic, as a 14% increase in profits is expected in the upcoming year, relative to the past 5-year average growth rate of -11%. With trailing-twelve-month net income at current levels of øre94m, we should see this rise to øre107m in 2020. Below is a brief commentary around Aurskogrebank’s earnings outlook going forward, which may give you a sense of market sentiment for the company. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
Exciting times ahead?
The longer term view from the 2 analysts covering AURG is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To understand the overall trajectory of AURG’s earnings growth over these next fews years, I’ve fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
By 2022, AURG’s earnings should reach øre130m, from current levels of øre94m, resulting in an annual growth rate of 9.7%. However, if we exclude extraordinary items from net income, we see that earnings is projected to fall over time, resulting in an EPS of NOK15.48 in the final year of forecast compared to the current NOK39.44 EPS today. With a current profit margin of 43%, this movement will result in a margin of 50% by 2022.
Future outlook is only one aspect when you’re building an investment case for a stock. For Aurskogrebank, I’ve put together three essential aspects 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 Aurskogrebank 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 Aurskogrebank is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Aurskogrebank? 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 firstname.lastname@example.org. 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.