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Based on Systemair AB (publ)'s (STO:SYSR) earnings update on 30 April 2019, analyst consensus outlook appear cautiously optimistic, with earnings expected to grow by 40% in the upcoming year compared with the past 5-year average growth rate of -13%. Presently, with latest-twelve-month earnings at kr322m, we should see this growing to kr451m by 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
View our latest analysis for Systemair
How will Systemair perform in the near future?
The 3 analysts covering SYSR view its longer term outlook with a positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To get an idea of the overall earnings growth trend for SYSR, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
This results in an annual growth rate of 19% based on the most recent earnings level of kr322m to the final forecast of kr593m by 2022. This leads to an EPS of SEK11.42 in the final year of projections relative to the current EPS of SEK6.18. In 2022, SYSR's profit margin will have expanded from 3.9% to 5.9%.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Systemair, I've compiled three key factors you should further research:
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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 Systemair 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 Systemair 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 Systemair? 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.