Since SJR in Scandinavia AB (publ) (STO:SJR B) released its earnings in December 2018, the consensus outlook from analysts appear fairly confident, as a 28% increase in profits is expected in the upcoming year, against the past 5-year average growth rate of 9.8%. With trailing-twelve-month net income at current levels of kr29m, we should see this rise to kr37m in 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for SJR in Scandinavia in the longer term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.

See our latest analysis for SJR in Scandinavia

Can we expect SJR in Scandinavia to keep growing?

The longer term view from the 1 analysts covering SJR 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.

This results in an annual growth rate of 15% based on the most recent earnings level of kr29m to the final forecast of kr47m by 2022. This leads to an EPS of SEK4.33 in the final year of projections relative to the current EPS of SEK2.76. Margins are currently sitting at 7.3%, which is expected to expand to 8.4% by 2022.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For SJR in Scandinavia, I've compiled three relevant factors you should further examine:

1. 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.

2. Valuation: What is SJR in Scandinavia 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 SJR in Scandinavia is currently mispriced by the market.

3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of SJR in Scandinavia? 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.