Yahoo Finance What Do Analysts Think About Shopping Centres Australasia Property Group’s (ASX:SCP) Earnings Trend?
Shopping Centres Australasia Property Group’s (ASX:SCP) latest earnings update in June 2018 showed that the business endured a major headwind with earnings declining by -45%. Below is a brief commentary on my key takeaways on how market analysts perceive Shopping Centres Australasia Property Group’s earnings growth outlook 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 Shopping Centres Australasia Property Group
Market analysts’ prospects for the coming year seems pessimistic, with earnings declining by a double-digit -23%. Beyond this, earnings are expected to continue to be below today’s level, with a decline of -16% in 2020, eventually reaching AU$147m in 2021.
Even though it is helpful to understand the growth rate each year relative to today’s figure, it may be more insightful evaluating the rate at which the business is growing on average every year. The pro of this method is that we can get a better picture of the direction of Shopping Centres Australasia Property Group’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To compute 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 -4.2%. This means that, we can assume Shopping Centres Australasia Property Group will chip away at a rate of -4.2% every year for the next few years.
Next Steps:
For Shopping Centres Australasia Property Group, I’ve put together three relevant factors 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 SCP 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 SCP is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of SCP? 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.