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Sensorion SA (EPA:ALSEN): What Does The Future Look Like?

In December 2017, Sensorion SA (EPA:ALSEN) announced its latest earnings update, which signalled that losses became smaller relative to the prrior year’s level – great news for investors Below, I’ve presented key growth figures on how market analysts predict Sensorion’s earnings growth trajectory over the next few years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.

Check out our latest analysis for Sensorion

Market analysts’ consensus outlook for next year seems relatively muted, with earnings continuing to flop around in the negative territory, generating -€8m in 2019. Moreover, earnings are predicted to fall further in the following year, before bouncing back up again to -€9m in 2021.

ENXTPA:ALSEN Future Profit October 4th 18
ENXTPA:ALSEN Future Profit October 4th 18

While it is helpful to be aware of the rate of growth year by year relative to today’s figure, it may be more valuable to estimate the rate at which the earnings are moving every year, on average. The benefit of this technique is that it removes the impact of near term flucuations and accounts for the overarching direction of Sensorion’s earnings trajectory over time, fluctuate up and down. To calculate this rate, I’ve inserted 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 -0.9%. This means that, we can anticipate Sensorion will chip away at a rate of -0.9% every year for the next few years.

Next Steps:

For Sensorion, there are three relevant aspects you should look at:

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  1. 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.

  2. Future Earnings: How does ALSEN’s growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.

  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of ALSEN? 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 past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.