Yahoo Finance How Do Analysts See Bukit Sembawang Estates Limited (SGX:B61) Performing In The Years Ahead?
Bukit Sembawang Estates Limited’s (SGX:B61) latest earnings announcement in March 2018 revealed that the company experienced a immense headwind with earnings declining by -23.66%. Today I want to provide a brief commentary on how market analysts predict Bukit Sembawang Estates’s earnings growth trajectory over the next few years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in. See our latest analysis for Bukit Sembawang Estates
Market analysts’ consensus outlook for the coming year seems positive, with earnings growth more than doubling. Earnings continue to grow strongly in the next couple of years, finally reaching S$181.88M in 2021.
Even though it is useful to be aware of the growth rate year by year relative to today’s value, it may be more valuable to estimate the rate at which the business is growing every year, on average. The benefit of this approach is that we can get a better picture of the direction of Bukit Sembawang Estates’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To compute this rate, I’ve appended 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 27.46%. This means, we can expect Bukit Sembawang Estates will grow its earnings by 27.46% every year for the next few years.
Next Steps:
For Bukit Sembawang Estates, I’ve compiled three fundamental 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 B61 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 B61 is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of B61? 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 pass 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.
