How Do Analysts See SpareBank 1 SR-Bank ASA (OB:SRBANK) Performing In The Years Ahead?
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SpareBank 1 SR-Bank ASA's (OB:SRBANK) released its most recent earnings update in December 2018, which signalled that the business gained from a small tailwind, leading to a single-digit earnings growth of 9.9%. Below, I've laid out key numbers on how market analysts perceive SpareBank 1 SR-Bank's earnings growth outlook over the next few years and whether the future looks even brighter than the past. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.
Check out our latest analysis for SpareBank 1 SR-Bank
Analysts' expectations for the upcoming year seems positive, with earnings expanding by a robust 22%. However, earnings is expected to fall slightly in the following year before rising again to øre2.7b in 2022.
While it’s useful to understand the growth rate year by year relative to today’s level, it may be more beneficial to estimate the rate at which the company is rising or falling on average every year. The advantage of this approach is that we can get a better picture of the direction of SpareBank 1 SR-Bank'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 4.7%. This means that, we can assume SpareBank 1 SR-Bank will grow its earnings by 4.7% every year for the next few years.
Next Steps:
For SpareBank 1 SR-Bank, I've compiled 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 SRBANK 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 SRBANK is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of SRBANK? 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 editorial-team@simplywallst.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.
