Yahoo Finance What Should You Know About Singapore Post Limited’s (SGX:S08) Earnings Trend?
Singapore Post Limited’s (SGX:S08) announced its latest earnings update in March 2018, which showed that the business experienced a significant tailwind, more than doubling its earnings from the prior year. Below, I’ve presented key growth figures on how market analysts view Singapore Post’s earnings growth outlook over the next few 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. See our latest analysis for Singapore Post
Market analysts’ consensus outlook for this coming year seems buoyant, with earnings growing by a robust 17.43%. This growth seems to continue into the following year with rates arriving at double digit 31.94% compared to today’s earnings, and finally hitting S$163.90M by 2021.
Even though it is helpful to be aware of the rate of growth year by year relative to today’s value, it may be more valuable evaluating the rate at which the business is rising or falling every year, on average. The advantage of this method is that we can get a better picture of the direction of Singapore Post’s earnings trajectory over the long run, irrespective of near term fluctuations, 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 12.74%. This means, we can anticipate Singapore Post will grow its earnings by 12.74% every year for the next couple of years.
Next Steps:
For Singapore Post, I’ve put together three fundamental factors you should look at:
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 S08 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 S08 is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of S08? 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.
