Yahoo Finance Shurgard Self Storage S.A. (EBR:SHUR): Poised For Long-Term Success?
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The latest earnings release Shurgard Self Storage S.A.'s (EBR:SHUR) announced in December 2018 showed that the business experienced a significant headwind with earnings falling by -19%. Today I want to provide a brief commentary on how market analysts predict Shurgard Self Storage's earnings growth outlook over the next couple of years and whether the future looks brighter. 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 Shurgard Self Storage
Market analysts' consensus outlook for next year seems buoyant, with earnings growing by a significant 88%. However, this positive earnings growth is not expected to last, with earnings facing a downward trend over the next couple of years, reaching €208m in 2022.
Even though it is helpful to understand the growth rate year by year relative to today’s figure, it may be more beneficial to evaluate the rate at which the earnings are moving every year, on average. The benefit of this technique is that we can get a bigger picture of the direction of Shurgard Self Storage's earnings trajectory over the long run, irrespective of near term fluctuations, fluctuate up and down. 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 4.0%. This means, we can assume Shurgard Self Storage will grow its earnings by 4.0% every year for the next few years.
Next Steps:
For Shurgard Self Storage, there are three fundamental aspects 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 SHUR 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 SHUR is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of SHUR? 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.
