Yahoo Finance What Do Analysts Think About The Future Of OneSavings Bank Plc's (LON:OSB)?
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In December 2018, OneSavings Bank Plc (LON:OSB) announced its earnings update. Overall, analysts seem cautiously bearish, as a 19% rise in profits is expected in the upcoming year, relative to the higher past 5-year average growth rate of 26%. With trailing-twelve-month net income at current levels of UK£136m, we should see this rise to UK£161m in 2020. Below is a brief commentary around OneSavings Bank's earnings outlook going forward, which may give you a sense of market sentiment for the company. For those interested in more of an analysis of the company, you can research its fundamentals here.
See our latest analysis for OneSavings Bank
How is OneSavings Bank going to perform in the near future?
The longer term expectations from the 9 analysts of OSB is tilted towards the positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of OSB's earnings growth over these next few years.
This results in an annual growth rate of 9.6% based on the most recent earnings level of UK£136m to the final forecast of UK£184m by 2022. EPS reaches £0.73 in the final year of forecast compared to the current £0.56 EPS today. This high rate of growth of revenue squeezes margins, as analysts predict an upcoming margin contraction from the current 49% to 47% by the end of 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For OneSavings Bank, I've put together three important 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 OneSavings Bank 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 OneSavings Bank is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of OneSavings Bank? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
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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.
