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Starrag Group Holding AG's (VTX:STGN) most recent earnings update in December 2018 showed that the business experienced a major headwind with earnings falling by -30%. Below, I've laid out key growth figures on how market analysts view Starrag Group Holding's earnings growth trajectory over the next couple of years and whether the future looks brighter. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.
See our latest analysis for Starrag Group Holding
Analysts' outlook for the upcoming year seems pessimistic, with earnings decreasing by -1.9%. But in the following year, there is a complete contrast in performance, with arriving at double digit 33% compared to today’s level and continues to increase to CHF14m in 2022.
Even though it is informative understanding the growth year by year relative to today’s level, it may be more valuable to evaluate the rate at which the earnings are growing every year, on average. The advantage of this technique is that it ignores near term flucuations and accounts for the overarching direction of Starrag Group Holding's earnings trajectory over time, which may be more relevant for long term investors. To compute this rate, I've inserted a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 17%. This means that, we can anticipate Starrag Group Holding will grow its earnings by 17% every year for the next couple of years.
Next Steps:
For Starrag Group Holding, I've put together three pertinent factors you should further examine:
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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.
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Valuation: What is STGN 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 STGN is currently mispriced by the market.
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Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of STGN? 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.