Want to participate in a short research study? Help shape the future of investing tools and receive a $20 prize!
DNB ASA’s (OB:DNB) latest earnings announcement in December 2018 showed that the business gained from a strong tailwind, leading to a double-digit earnings growth of 13%. Below, I’ve presented key growth figures on how market analysts view DNB’s earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings.
Market analysts’ prospects for this coming year seems rather muted, with earnings climbing by a single digit 6.6%. The following year doesn’t look much more exciting, though earnings does reach øre25b in 2022.
While it’s helpful to be aware of the growth rate each year relative to today’s value, it may be more valuable determining the rate at which the business is growing on average every year. The pro of this approach is that we can get a bigger picture of the direction of DNB’s earnings trajectory over the long run, irrespective of near term fluctuations, be more volatile. 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 1.6%. This means, we can expect DNB will grow its earnings by 1.6% every year for the next few years.
For DNB, 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 DNB 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 DNB is currently mispriced by the market.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of DNB? 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.