Yahoo Finance Savills plc (LON:SVS): What Does The Future Look Like?
Looking at Savills plc's (LON:SVS) earnings update in December 2018, the consensus outlook from analysts appear somewhat bearish, with earnings expected to grow by -45% in the upcoming year relative to the higher past 5-year average growth rate of 8.5%. By 2020, we can expect Savills’s bottom line to reach UK£42m, a jump from the current trailing-twelve-month of UK£77m. Below is a brief commentary on the longer term outlook the market has for Savills. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
Check out our latest analysis for Savills
What can we expect from Savills in the longer term?
Longer term expectations from the 3 analysts covering SVS’s stock is one of positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To get an idea of the overall earnings growth trend for SVS, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
By 2022, SVS's earnings should reach UK£105m, from current levels of UK£77m, resulting in an annual growth rate of 13%. EPS reaches £0.75 in the final year of forecast compared to the current £0.56 EPS today. Margins are currently sitting at 4.4%, which is expected to expand to 5.6% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Savills, I've put together three important factors you should further research:
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 Savills 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 Savills is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Savills? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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.
