What Are Analysts Saying About Norwegian Finans Holding ASA’s (OB:NOFI) Growth?

The most recent earnings release Norwegian Finans Holding ASA’s (OB:NOFI) announced in December 2017 confirmed that the business gained from a large tailwind, leading to a high double-digit earnings growth of 66.46%. Investors may find it useful to understand how market analysts predict Norwegian Finans Holding’s earnings growth trajectory over the next few 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. Check out our latest analysis for Norwegian Finans Holding

Analysts’ expectations for the upcoming year seems optimistic, with earnings expanding by a robust 18.61%. This growth seems to continue into the following year with rates reaching double digit 35.28% compared to today’s earnings, and finally hitting ØRE2.35B by 2021.

OB:NOFI Future Profit May 2nd 18
OB:NOFI Future Profit May 2nd 18

While it’s useful to be aware of the growth year by year relative to today’s value, it may be more beneficial gauging the rate at which the business is moving on average every year. The advantage of this approach is that it removes the impact of near term flucuations and accounts for the overarching direction of Norwegian Finans Holding’s earnings trajectory over time, which may be more relevant for long term investors. 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 12.63%. This means that, we can presume Norwegian Finans Holding will grow its earnings by 12.63% every year for the next couple of years.

Next Steps:

For Norwegian Finans Holding, I’ve put together three relevant factors you should further research:

  1. 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.
  2. Valuation: What is NOFI 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 NOFI is currently mispriced by the market.
  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of NOFI? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!