On 31 December 2018, Sparebanken Møre (OB:MORG) released its earnings update. Generally, it seems that analyst forecasts are substantially optimistic, as earnings are expected to increase by more than twofold next year, against the previous 5-year average growth rate of 2.3%. By 2020, we can expect Sparebanken Møre’s bottom line to reach øre621m, a jump from the current trailing-twelve-month of øre300m. I will provide a brief commentary around the figures and analyst expectations in the near term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
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Exciting times ahead?
The 5 analysts covering MORG 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. I’ve plotted out each year’s earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of MORG’s earnings growth over these next few years.
By 2022, MORG’s earnings should reach øre616m, from current levels of øre300m, resulting in an annual growth rate of 22%. EPS reaches NOK30.8 in the final year of forecast compared to the current NOK29.8 EPS today. In 2022, MORG’s profit margin will have expanded from 21% to 41%.
Future outlook is only one aspect when you’re building an investment case for a stock. For Sparebanken Møre, I’ve compiled three fundamental factors you should further research:
- 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 Sparebanken Møre 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 Sparebanken Møre is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Sparebanken Møre? 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 past 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. For errors that warrant correction please contact the editor at firstname.lastname@example.org.