Yahoo Finance Shurgard Self Storage S.A. (EBR:SHUR): Immense Growth Potential?
After Shurgard Self Storage S.A.'s (EBR:SHUR) earnings announcement on 30 June 2019, analysts seem extremely confident, as a 58% rise in profits is expected in the upcoming year, compared with the previous 5-year average growth rate of 1.8%. By 2020, we can expect Shurgard Self Storage’s bottom line to reach €270m, a jump from the current trailing-twelve-month of €171m. Below is a brief commentary on the longer term outlook the market has for Shurgard Self Storage. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
Check out our latest analysis for Shurgard Self Storage
Exciting times ahead?
The longer term view from the 5 analysts covering SHUR is one of positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.
From the current net income level of €171m and the final forecast of €251m by 2022, the annual rate of growth for SHUR’s earnings is 1.4%. This leads to an EPS of €2.82 in the final year of projections relative to the current EPS of €2.48. This initial high-growth revenue squeezes SHUR's margins. However, analysts are expecting earnings growth to catch up, and current margins of 70% to expand to 81% by the end of 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Shurgard Self Storage, I've compiled three key aspects 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 Shurgard Self Storage 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 Shurgard Self Storage is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Shurgard Self Storage? 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.
