Yahoo Finance What Should We Expect From Tomra Systems ASA’s (OB:TOM) Earnings Over The Next Few Years?
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Tomra Systems ASA’s (OB:TOM) most recent earnings update in December 2018 revealed that the company gained from a robust tailwind, eventuating to a double-digit earnings growth of 21%. Below, I’ve laid out key numbers on how market analysts view Tomra Systems’s earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings.
Check out our latest analysis for Tomra Systems
Market analysts’ prospects for this coming year seems rather subdued, with earnings climbing by a single digit 8.5%. The growth outlook in the following year seems much more buoyant with rates generating double digit 31% compared to today’s earnings, and finally hitting øre1.0b by 2022.
Although it’s informative understanding the growth rate each year relative to today’s level, it may be more valuable gauging the rate at which the business is moving on average every year. The pro of this method is that it removes the impact of near term flucuations and accounts for the overarching direction of Tomra Systems’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 analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 12%. This means that, we can anticipate Tomra Systems will grow its earnings by 12% every year for the next few years.
Next Steps:
For Tomra Systems, I’ve compiled three key 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 TOM 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 TOM is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of TOM? 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.
