Yahoo Finance Skellerup Holdings Limited (NZSE:SKL): What Are The Future Prospects?
The latest earnings announcement Skellerup Holdings Limited (NZSE:SKL) released in June 2018 suggested that the business gained from a robust tailwind, leading to a double-digit earnings growth of 23.37%. Below, I’ve laid out key numbers on how market analysts view Skellerup Holdings’s earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.
View our latest analysis for Skellerup Holdings
Market analysts’ prospects for the coming year seems rather muted, with earnings growing by a single digit 9.38%. The growth outlook in the following year seems much more buoyant with rates generating double digit 18.07% compared to today’s earnings, and finally hitting NZ$33.80m by 2021.
While it is useful to understand the growth rate each year relative to today’s level, it may be more valuable evaluating the rate at which the business is moving on average every year. The pro of this approach is that it ignores near term flucuations and accounts for the overarching direction of Skellerup Holdings’s earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I put 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 7.13%. This means that, we can anticipate Skellerup Holdings will grow its earnings by 7.13% every year for the next few years.
Next Steps:
For Skellerup Holdings, I’ve put together three relevant aspects 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 SKL 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 SKL is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of SKL? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
