Yahoo Finance What Should Investors Know About St James’s Place plc’s (LON:STJ) Future?
In December 2017, St James’s Place plc (LSE:STJ) released its most recent earnings announcement, which signalled that the business gained from a robust tailwind, leading to a double-digit earnings growth of 30.04%. Investors may find it useful to understand how market analysts predict St. James’s Place’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 St. James’s Place
Analysts’ expectations for the upcoming year seems positive, with earnings climbing by a robust 46.91%. This growth seems to continue into the following year with rates arriving at double digit 84.52% compared to today’s earnings, and finally hitting UK£332.79M by 2021.
Even though it is useful to understand the rate of growth each year relative to today’s level, it may be more beneficial analyzing the rate at which the company is rising or falling on average every year. The advantage of this technique is that we can get a better picture of the direction of St. James’s Place’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 the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 21.24%. This means that, we can anticipate St. James’s Place will grow its earnings by 21.24% every year for the next couple of years.
Next Steps:
For St. James’s Place, I’ve compiled three fundamental factors 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 STJ 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 STJ is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of STJ? 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.
