Exciting times ahead?The longer term view from the 5 analysts covering SGMO is one of negative sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To reduce the year-on-year volatility of analyst earnings forecast, I’ve inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line. From the current net income level of -US$54.57M and the final forecast of -US$72.93M by 2021, the annual rate of growth for SGMO’s earnings is -12.00%. However, if we exclude extraordinary items from earnings, we see that the profits is predicted to rise over time, resulting in an EPS of $-0.44 in the final year of forecast compared to the current $-0.7 EPS today. Fall in earnings appears to be a result of cost outpacing top line growth of 18.90% over the next few years. Furthermore, the current -149.23% margin is expected to contract to -55.75% by the end of 2021.
Future outlook is only one aspect when you’re building an investment case for a stock. For Sangamo Therapeutics, there are three relevant aspects 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 Sangamo Therapeutics 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 Sangamo Therapeutics is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Sangamo Therapeutics? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!