Shareholders may have noticed that SSAB AB (released) (STO: SSAB A) filed its quarterly results around the same time last week. The first response was not positive, with stocks falling 3.9% to 28.90 kr last week. It was a respectable set of results; While revenue of Kroner 14 billion was in line with analysts’ forecasts, statutory losses were 12% lower than expected, with SSAB losing Kroner 0.72 per share. Analysts usually update their forecasts with each earnings report, and we can judge from their estimates whether their view of the business has changed or if there are new concerns to consider. So we’ve collected the latest post-profit statutory consensus estimates to see what might be in store for next year.
Check out our latest analysis for SSAB
Based on the latest results, the most recent consensus for SSAB of 13 analysts is a revenue of SEK 70.7 billion in 2021 which, if achieved, would represent a significant increase of 8.1% per year. compared to its sales over the past 12 months. Profits are expected to improve, with SSAB expecting a statutory profit of kr 1.68 per share. Before this report was written, analysts had modeled revenue of NKr 72.1 billion and earnings per share (EPS) of NKr 1.68 in 2021. So it’s pretty clear that although analysts have set Based on their estimates, there has been no major change in the company’s expectations following the latest results.
So it will come as no surprise to learn that the consensus price target is largely unchanged at 30.89 kr. Sticking to a single price target can be unwise, however, as the consensus target is actually the average of analysts’ price targets. As a result, some investors like to look at the range of estimates to see if there are any differing opinions on the valuation of the company. There are a few variations of perceptions on SSAB, with the most bullish analyst valuing it at 36.00 kr and the most bearish at 21.00 kr per share. This shows that there is still a bit of diversity in the estimates, but analysts don’t seem totally divided over the title as if it is a hit or miss situation.
Of course, another way to look at these forecasts is to put them in context to the industry itself. Next year will bring more of the same, analysts say, with revenue forecast growing 8.1%, in line with its 7.2% annual growth over the past five years. Compare that with the industry as a whole, whose analysts’ estimates (overall) suggest revenue will grow 4.9% next year. So it’s pretty clear that SSAB is expected to grow much faster than its industry.
The bottom line
The most obvious conclusion is that there has been no major change in the outlook for the company lately, with analysts keeping their earnings forecasts stable, in line with previous estimates. Fortunately, they also reconfirmed their revenue figures, suggesting that sales are moving according to expectations – and our data suggests that revenue is expected to grow faster than the industry as a whole. The consensus price target stood at 30.89 kr as the latest estimates were not sufficient to impact their price targets.
That said, the company’s long-term earnings trajectory is much bigger than next year. We have estimates – from several SSAB analysts – up to 2024, and you can see them for free on our platform here.
It may also be worth considering whether SSAB’s leverage is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
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