Home Property What Do Investors Need To Know About Swiss Finance & Property Investment AG's (VTX:SFPN) Earnings Outlook?

What Do Investors Need To Know About Swiss Finance & Property Investment AG's (VTX:SFPN) Earnings Outlook?

5 min read

In December 2017, Swiss Finance & Property Investment AG (SWX:SFPN) released its latest earnings announcement, which signalled that the company experienced a immense headwind with earnings falling by -20.92%. Below, I’ve laid out key numbers on how market analysts predict Swiss Finance & Property Investment’s earnings growth trajectory over the next few years and whether the future looks brighter. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings. Check out our latest analysis for Swiss Finance & Property Investment

Market analysts’ prospects for next year seems pessimistic, with earnings declining by a double-digit -31.50%. In the next couple of years, earnings are expected to continue to be below today’s level, with a decline of -36.00% in 2020, eventually reaching CHF12.37M in 2021.

SWX:SFPN Future Profit Apr 13th 18

Even though it is useful to be aware of the growth each year relative to today’s level, it may be more insightful to evaluate the rate at which the business is moving every year, on average. The pro of this method is that we can get a bigger picture of the direction of Swiss Finance & Property Investment’s earnings trajectory over the long run, irrespective of near term fluctuations, fluctuate up and down. To calculate this rate, I put a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is -15.38%. This means that, we can anticipate Swiss Finance & Property Investment will chip away at a rate of -15.38% every year for the next few years.

Next Steps:

For Swiss Finance & Property Investment, I’ve compiled three essential factors you should further examine:

  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. Valuation: What is SFPN 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 SFPN is currently mispriced by the market.
  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of SFPN? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!

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