Tsakos Energy Navigation Limited’s (NYSE:TNP) most recent earnings announcement in December 2018 indicated company earnings became less negative compared to the previous year’s level – great news for investors Below, I’ve laid out key growth figures on how market analysts view Tsakos Energy Navigation’s earnings growth outlook over the next couple of years and whether the future looks brighter. 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.
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Market analysts’ prospects for this coming year seems buoyant, with earnings becoming less negative, generating -US$57.1m in 2020. However, earnings should fall off in the following year, before bouncing back up again to -US$58.3m in 2022.
While it is useful to be aware of the rate of growth each year relative to today’s figure, it may be more beneficial analyzing the rate at which the earnings are growing every year, on average. The advantage of this technique is that we can get a bigger picture of the direction of Tsakos Energy Navigation’s earnings trajectory over the long run, irrespective of near term fluctuations, fluctuate up and down. To compute 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 49%. This means that, we can expect Tsakos Energy Navigation will grow its earnings by 49% every year for the next few years.
For Tsakos Energy Navigation, there are three key 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 TNP 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 TNP is currently mispriced by the market.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of TNP? 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 email@example.com. 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.