On 31 December 2018, Pricer AB (publ) (STO:PRIC B) announced its earnings update. Overall, the consensus outlook from analysts appear somewhat bearish, with profits predicted to rise by -9.1% next year compared with the higher past 5-year average growth rate of 52%. Presently, with latest-twelve-month earnings at kr87m, we should see this growing to kr79m by 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
How will Pricer perform in the near future?
The longer term view from the 1 analysts covering PRIC B is one of positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. 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.
By 2022, PRIC B's earnings should reach kr102m, from current levels of kr87m, resulting in an annual growth rate of 7.0%. EPS reaches SEK0.93 in the final year of forecast compared to the current SEK0.79 EPS today. Margins are currently sitting at 7.3%, which is expected to expand to 7.6% by 2022.
Future outlook is only one aspect when you're building an investment case for a stock. For Pricer, I've put together three pertinent factors 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 Pricer 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 Pricer is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Pricer? 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.