Yahoo Finance Kid ASA (OB:KID): Is It A Smart Long Term Opportunity?
As Kid ASA (OB:KID) released its earnings announcement on 31 December 2018, analyst forecasts seem fairly subdued, with earnings expected to grow by -4.8% in the upcoming year relative to the higher past 5-year average growth rate of 15%. By 2020, we can expect Kid’s bottom line to reach øre161m, a jump from the current trailing-twelve-month of øre169m. Below is a brief commentary on the longer term outlook the market has for Kid. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
Check out our latest analysis for Kid
Can we expect Kid to keep growing?
The longer term view from the 1 analysts covering KID 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 understand the overall trajectory of KID's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
This results in an annual growth rate of 2.4% based on the most recent earnings level of øre169m to the final forecast of øre182m by 2022. This leads to an EPS of NOK4.48 in the final year of projections relative to the current EPS of NOK4.15. As revenues is expected to outpace earnings, analysts expect margins to contract from the current 12% to 11% by the end of 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Kid, there are three relevant factors 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 Kid 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 Kid is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Kid? 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.
